SpiceJet Ltd shares climbed 5 per cent in Thursday’s trade after the airline announced that it had reached a settlement with Carlyle Aviation Partners, unlocking a liquidity boost of $89.5 million.

On Thursday, SpiceJet stock rose as much as 5.4 per cent to hit the day’s low of Rs 34.85 apiece on the BSE, over its previous close of Rs 33.06. At 11:29 am, the company shares were up 1.91 per cent at Rs 33.69.

In a filing to the BSE, SpiceJet said the agreement would provide $79.6 million in cash maintenance reserves for future aircraft and engine upkeep, along with $9.9 million in credits to offset lease obligations

The company added that the settlement involves restructuring certain lease obligations worth $121.18 million, combined with the issuance of equity shares aggregating to $50 million. A mechanism has also been built into the deal, allowing excess proceeds from the sale of these shares, above $50 million, to be applied towards future lease obligations.

Ajay Singh, Chairman and Managing Director of SpiceJet, said, “This agreement marks a significant milestone in our ongoing restructuring and un-grounding efforts. 

Source:Msn