SpiceJet will demerge its freight business to subordinate SpiceXpress & Logistics into a new corporation by April 1, the corporation said in a regulatory filing on February 27. This sale is predictable to wipe out a considerable share of the company’s debt and result in a one-time advantage of Rs 2,555.77 crore.

Carlyle Aviation Partners, one of SpiceJet’s leading lessors, has decided to transform its outstanding agreement rental into equity. SpiceJet will transfigure shares worth about $ 29.5 million at Rs 48 per equity share.

Carlyle has at least seven B737-800s and three B737-900(ER)s presently positioned with the troubled low-cost transporter. The lessor is deliberated to be incredibly uncovered to SpiceJet’s monetary problems, and the agreement will see it renovate outstanding lease debts into equity.

The Board has also projected raising renewed capital of up to Rs 2,500 crore through qualified securities to trained institutional buyers, pending consent from the company’s affiliates.

As of December 31 2022, SpiceJet’s total liabilities stood at Rs 140 billion. The airline did not unveil its debt distinctly in its financial results for October-December.

In the three months that ended December 2022, the company’s logistics arm collected a net profit of Rs 117.60 million on revenues of Rs 1.196 billion.