This Article is From Sep 05, 2023

SpiceJet Gives Lessors 4.8 Crore Shares To Clear Over Rs 230 Crore Dues

SpiceJet has been scrambling to raise funds and restore operations for about a fourth of its fleet that has been grounded amid fierce competition in the sector.

SpiceJet Gives Lessors 4.8 Crore Shares To Clear Over Rs 230 Crore Dues

SpiceJet's shareholders on Thursday passed a number of resolutions (Representational)

Bengaluru:

Low-cost carrier SpiceJet on Monday said it allotted over 4.8 crore shares to nine aircraft lessors to clear outstanding dues worth nearly Rs 231 crore, as the troubled airline looks to return to full operations.

The carrier's shareholders had on Thursday passed a number of resolutions, including a Rs 2,500 crore fundraising and a preferential issue of shares to lessors to clear outstanding dues.

SpiceJet has been scrambling to raise funds and restore operations for about a fourth of its fleet that has been grounded amid fierce competition in the sector.

The fund crunch and grounded fleet have eroded SpiceJet's market share to 4.2% as of July - lower than that of new entrant Akasa, which only began commercial operations in August 2022.

SpiceJet, which in February converted around $100 million in dues to aircraft lessor Carlyle Aviation into equity and debentures, still finds itself in legal battles with other lessors over dues.

Moreover, two weeks back, a court ordered the airline to pay Rs 99.27 crore by September 10 to former owner Kalanithi Maran over money owed.

Two months back, SpiceJet's top shareholder and managing director, Ajay Singh, said he would infuse Rs 500 crore into the company.

Its cash and cash equivalents for the year ended March 31 stood at Rs 33.7 crore.

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