BENGALURU, Sept 6 (Reuters) - India's SpiceJet

on Friday said it will convert about $97 million of its dues to

the commercial aviation investment and servicing arm of Carlyle

Group ( CG ) into equity and debentures.

The restructuring plan comes as the budget airline has

struggled to fully restore operations despite multiple

fundraises over the last year.

Late last month, the country's aviation watchdog placed

SpiceJet under enhanced surveillance after a recent audit

revealed "certain deficiencies".

The carrier on Friday said it entered into an agreement with

Carlyle Aviation Management to restructure certain aircraft

lease obligations of about $137.68 million, as of June 30, which

upon settlement or waivers will be adjusted to $97.51 million.

SpiceJet said it will issue shares worth $30 million to

Carlyle, and also transfer $20 million worth of compulsorily

converted debentures of SpiceXpress, a separate airline cargo

company owned by the carrier.

Last year, SpiceJet had done a similar restructuring of its

dues to Carlyle Aviation.