SpiceJet plans to settle outstanding debts with two-step transaction plan

SpiceJet has put forward a two-step transaction plan to clear the outstanding debts worth INR 25bn to lessors, reports Economic Times. Looks like the plan aims to turn lessors into potential investors. According to sources, SpiceJet will first transfer its cargo undertaking to a newly created subsidiary, SpiceXpress. It will then issue compulsorily convertible debentures (CCDs) to the parent company SpiceJet. Then SpiceJet will offer lessors the option to swap lease payments with the CCDs. During the annual report briefing for 2021-22, SpiceJet Chief Ajay Singh has clarified that the airline had completed most of the settlements with partners, manufacturers and