India's SpiceJet Says Carlyle Aviation Will Write Off $40 Mn Of Lease Arrears

India's SpiceJet said on Tuesday that Carlyle Group's commercial aviation investment and servicing unit will write off USD 40.2 million of the airline's lease arrears and convert USD 30 million of its arrears into equity.

The conversion, at Rs 100 per share of SpiceJet, is a 56 per cent premium to its close on Monday. The budget carrier's shares jumped as much as 6 per cent after the announcement.

The write-off comes days after the airline said it would convert dues to Carlyle Aviation into equity and debentures. The airline has been struggling to fully restore operations despite multiple fundraisers over the last year, trailing, rivals IndiGo and Tata-owned Air India in terms of market share.

The conversion will "significantly" increase Carlyle Aviation's stake in the carrier, SpiceJet said.

Carlyle Aviation currently holds a nearly 6 per cent stake in SpiceJet, the latter said in a response to a Reuters inquiry. The airline did not disclose the stake Carlyle Aviation will hold post-conversion.

Late last month, the country's aviation watchdog placed SpiceJet under enhanced surveillance after a recent audit revealed "certain deficiencies".