SpiceJet Allocates 48 Million Shares to Lessors To Settle Dues Worth Rs 231 Cr

SpiceJet has allocated over 48 million shares, to nine aircraft lessors to clear outstanding dues worth Rs 231 crore. The crisis hit airline has been taking various measures to return to full operations.

The low-cost airline's shareholders on Thursday had passed on various resolutions that includes raising Rs 25 billion funds and a preferential issue of shares to lessors to clear outstanding dues.

Two months back SpiceJet's top shareholder and managing director, Ajay Singh, said he would infuse 5 billion rupees into the company.

SpiceJet in February, converted around $100 million in dues to aircraft lessor Carlyle Aviation into equity and debentures. However, the airline still was involved in legal battles with other lessors over dues. Two weeks back, a court had ordered the airline to pay $12 million by Sept. 10 to former owner Kalanithi Maran over money owed.

SpiceJet has been looking to raise funds and restore operations to revive the fourth of its fleet. SpiceJet's market share has eroded to 4.2% as of July which is lower than that of new entrant Akasa, which only began commercial operations in August 2022.