SpiceJet Completes Payment Of $1.5 Million Towards Credit Suisse
The payment is made in response to the top court order, which warned of drastic measures in the event of non-compliance.
SpiceJet Ltd., in compliance with the direction of the Supreme Court, has made a payment of $1.5 million to Credit Suisse Group AG.
The payment was completed on Sept. 14.
During the last hearing on Sept. 11, the top court expressed dismay over the fact that SpiceJet was failing to take care of its debt obligations towards the Swiss investment bank.
At the time, the airline had outstanding arrears of about $4 million.
Consequently, the court ordered the airline to deposit $500,000 before Sept. 15 as part of its monthly payments. It further asked the airline to deposit an additional $1 million towards the defaulted amount.
The court had iterated that certain "drastic steps" will be taken towards Ajay Singh, chief managing director of SpiceJet, if he failed to comply with this order.
The case is scheduled for a hearing on Sept. 22.
SpiceJet and Credit Suisse reached a settlement agreement in May of last year, which the Supreme Court later approved.
The dispute emanates from an aircraft maintenance agreement that SpiceJet entered into with Switzerland-based SR Technics in 2011. Later, SR Technics signed a financing agreement with Credit Suisse. This gave Credit Suisse the right to get paid for invoices raised against SpiceJet for maintenance and repair of the aircraft.
In December 2021, the Madras High Court ordered the winding up of SpiceJet on the grounds that it failed to clear the debt owed to Credit Suisse.
This led to the matter landing in the top court, where both sides finally agreed to settle the dispute through a court-approved settlement.