SpiceJet on Tuesday said its board will meet on Friday to consider options to raise funds as well as to convert certain outstanding liabilities into equity shares of the company.

The no-frills airline, which has been grappling with multiple headwinds, including legal woes, is looking to raise fresh capital through the issuance of eligible securities to qualified institutional buyers.

Besides, the carrier plans to issue equity shares on a preferential basis consequent upon the conversion of outstanding liabilities into equity shares of the company, subject to applicable regulatory approvals, according to a filing to the BSE. Both plans will be taken up by the board of directors during its meeting scheduled for February 24.

In December last year, SpiceJet chairman and managing director Ajay Singh told shareholders that the company is engaged with investment bankers to raise up to $200million in order to achieve its future plans.

He had also said the increase in the Emergency Credit Line Guarantee Scheme to Rs 1,500 crore will go a long way in providing the much-needed stability to the sector. “The infusion of additional funds will help SpiceJet normalise its obligations, unground its fleet and induct new planes into our fleet... we have also completed a series of settlements with most of our major partners including manufacturers and lessors setting the stage for our seamless growth and expansion,” he had said.

On Tuesday, shares of the airline declined nearly 2 percent to Rs 37.60 apiece in the afternoon trade on the BSE. India’s domestic air passenger traffic nearly doubled to 1.25 crore in January compared with 64.08 lakh recorded in the year-ago period, according to official data released on Monday. In January, IndiGo saw its domestic market share decline for the fifth consecutive month at 54.6 per cent. It carried 68.47 lakh passengers last month. In August last year, the carrier had a market share of 59.72 per cent.