India’s SpiceJet on Friday said it will convert about $97 million of its dues to the commercial aviation investment and servicing arm of Carlyle Group into equity and debentures.
The restructuring plan comes as the budget airline has struggled to restore operations despite multiple fundraises over the last year.
Late last month, the country’s aviation watchdog placed SpiceJet under enhanced surveillance after a recent audit revealed “certain deficiencies”.
The carrier on Friday said it entered into an agreement with Carlyle Aviation Management to restructure certain aircraft lease obligations of about $137.68 million, as of June 30, which will be adjusted to $97.51 million upon settlement or waivers.
SpiceJet said it will issue shares worth $30 million to Carlyle and transfer $20 million worth of compulsorily converted debentures of SpiceXpress, a separate airline cargo company owned by the carrier.
Last year, SpiceJet had done a similar restructuring of its dues to Carlyle Aviation.
Reuters