New Delhi: SpiceJet on Tuesday said Carlyle Aviation will write off aircraft lease arrears worth USD 40.17 million as part of a settlement agreement that will also result in the entity hiking stake in the struggling airline.

Facing multiple headwinds, the budget carrier is working on ways to raise funds to the tune of Rs 3,200 crore, including infusion of money by the promoter.

On Friday, SpiceJet had mentioned about the settlement pact with Carlyle Aviation, which had earlier also restructured certain debt with the airline.

In a release on Tuesday, the airline said there is a significant debt relief and Carlyle Aviation will write off USD 40.17 million in lease arrears.

Besides, the entity will convert USD 30 million in lease arrears into SpiceJet equity at Rs 100 per share, following which its stake in the airline will increase significantly.

Currently, Carlyle Aviation has around 6 per cent stake in the company. According to the release, Carlyle Aviation will also convert USD 20 million in lease arrears into compulsorily convertible debentures of SpiceXpress & Logistics Pvt Ltd.

SpiceJet, which had a fleet of 74 planes in 2019, is operating around 20 aircraft. The outstanding liabilities include statutory dues worth Rs 650 crore. On Tuesday, shares of the airline rose 2.47 per cent to Rs 65.57 apiece.