SpiceJet announced on Tuesday that Carlyle Group's commercial aviation investment and servicing unit would write off $40.2 million of the airline's lease arrears and convert $30 million into equity.
SpiceJet's conversion price of Rs 100 ($1.19) per share represents a 56% premium to its Monday closing price. Following the announcement, the budget carrier's shares rose by up to 6%.
The write-off comes only days after the airline announced plans to convert Carlyle Aviation debt into equity and debentures. Despite several fundraising efforts over the previous year, the airline has struggled to fully restart operations, trailing market leaders IndiGo and Tata-owned Air India.
SpiceJet said that the conversion will "significantly" expand Carlyle Aviation's ownership in the company.
Carlyle Aviation presently owns approximately 6% of SpiceJet, the latter said in response to a Reuters inquiry. The airline did not disclose Carlyle Aviation's post-conversion ownership.
SpiceJet was placed under increased observation by the country's aviation body late last month after a recent assessment showed "certain deficiencies".
