Credit Suisse and SpiceJet face off in court over unpaid dues

Credit Suisse filed an alleged contempt petition against SpiceJet for unpaid dues worth $4.9 million, but SpiceJet, a budget carrier in India, stated that the Supreme Court did not issue any notice in response. SpiceJet’s spokesperson disclosed that they posted the matter and that they would make the payment for May on schedule as per the applicable terms. The payment of the settlement amount was pending approval from the RBI and thus, the company could not make the payment as per the consent terms.

SpiceJet

CNBC-TV18 had earlier reported on April 21 that Credit Suisse, a Swiss investment bank, had filed a case against SpiceJet in India’s apex court for non-payment of dues as per a settlement approved by the court. This pertains to an unpaid engine maintenance and repair agreement signed in 2011 when the airline was under the leadership of former promoter Kalanithi Maran.

In 2013, Credit Suisse filed a case against SpiceJet in the Madras High Court for not paying bills worth over $24 million for the maintenance, repair, and overhaul of the aircraft engines and components.

In December 2021, the high court ordered the winding up of the airline, but SpiceJet appealed to the Supreme Court. On January 28, the apex court stayed the high court order and granted three weeks to the budget carrier to resolve the commercial dispute. The Supreme Court will hear the pending matter on May 17, indicating that the development is still ongoing.

SpiceJet declared in May of last year that it had resolved a commercial disagreement of approximately $24 million with Credit Suisse. The airline agreed to pay the settlement sum over an agreed-upon duration of time.

Subsequently, in August, the two parties informed the Supreme Court that they had resolved their financial dispute. This development allowed SpiceJet to withdraw its appeal against the Madras High Court’s verdict to liquidate the budget airline.

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