Indian airline SpiceJet gives lessors shares to clear $28 mln dues (updated)

Spicejet

04/09/2023 12:55

(Adds details, background throughout)
       BENGALURU, Sept 4 (Reuters) - Indian low-cost carrier
SpiceJet  SPJT.BO  on Monday said it allotted over 48 million
shares to nine aircraft lessors to clear outstanding dues worth
2.31 billion rupees (nearly $28 million), as the troubled
airline looks to return to full operations.
    The carrier's shareholders had on Thursday passed a number
of resolutions, including a 25 billion rupees fundraise 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 has 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, an Indian court ordered the
airline to pay $12 million by Sept. 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 5 billion rupees into
the company.
    Its cash and cash equivalents for the year-ended March 31
stood at 337 million rupees.
 
 ($1 = 82.6730 Indian rupees)

 (Reporting by Nandan Mandayam in Bengaluru; Editing by Savio
D'Souza)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))