Spicejet’s board has approved the slump sale of cargo business to its subsidiary SpiceXpress and Logistics Pvt Ltd (SXPL). SXPL will issue Rs 2,556 crore worth of equity shares and debentures to the company for the logistics business, according to a BSE filing on Monday.
Spicejet’s board on Monday also approved the issuance of of qualified institutional placement (QIP) for up to Rs 2,500 crore, apart from announcing settlement with aircraft kessir castlelake.
“In terms of special resolution(s) passed by members of the Company and subject to receipt of final NOC of the lenders, the Board of Directors of the Company has agreed to enter into a business transfer agreement with its subsidiary namely SpiceXpress and Logistics Private Limited (SXPL) for transfer of its cargo business undertaking as a going concern, on slump sale basis," according to the BSE filing.
It added that accordingly, cargo business shall be exclusively undertaken by SXPL effective April 1, 2023 or such other date as may be finalised. The consideration for said transfer of cargo business undertaking shall be discharged by SXPL by issuance of securities in the combination of equity shares and compulsorily convertible debentures (CCDs) to the company for an aggregate amount of Rs 2,555.77 crore.
According to the filing, Carlyle Aviation Partners, one of its biggest lessors, has agreed to convert its outstanding lease rental into equity.
Read all the Latest Business News here