SpiceJet announces issue of shares to lessors to clear Rs. 231 crore dues | Business Upturn

SpiceJet announces issue of shares to lessors to clear Rs. 231 crore dues

SpiceJet Limited recently announced the allotment of 4.81 crore equity shares on a preferential basis to nine of its aircraft lessors.

SpiceJet Limited, India’s financially burdened low-cost carrier, has recently announced the allotment of 4.81 crore equity shares on a preferential basis to nine of its aircraft lessors in order to clear outstanding dues of ₹231 crore. The company had announced the aforementioned information through a statement filed with the BSE today.

According to the fresh reports, the shareholders of the company at its meeting issued numerous resolution which included a ₹2,500 crore fundraiser and a preferential issue of shares to lessors at an issue price of ₹48 each to clear its outstanding dues. A total of nine lessors who have been allotted the shares include – SASOF III (A13) Aviation Ireland DAC, SASOF III (A6) Aviation Ireland DAC, SASOF III (C) Aviation Ireland DAC, SASOF III (E) Aviation Ireland DAC, SASOF III (A19) Aviation Ireland DAC, SASOF II (J) Aviation Ireland DAC Citrine Aircraft Leasing Limited, Fly Aircraft Holdings Seven Limited, Fly Aircraft Holdings One Limited.

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SpiceJet has been struggling to raise funds and restore operations for about a fourth of its fleet that has been grounded in the middle of ongoing pressure from the competitors in the sector. Owing to the legal battles and grounded fleet have eroded the airline’s market share to 4.2% as of July – lower than that of new entrant Akasa Air.