SpiceJet was Ordered by Supreme Court to Pay the Settlement Amount to Credit Suisse by July 18
In a recent development, the Supreme Court has granted SpiceJet, the Indian low-cost airline, an extension until July 18 to pay the settlement amount owed to Credit Suisse. The decision came during a hearing on Wednesday, presided over by Justices AS Bopanna and Hima Kohli.
SpiceJet
The settlement amount is part of a $24-million dispute between SpiceJet and Credit Suisse. The Swiss firm had taken legal action against the airline by filing a winding-up case due to SpiceJet’s failure to fulfill its payment obligations related to the servicing of aircraft engines and components in 2013.
During the court proceedings, Credit Suisse informed the bench that although SpiceJet had made certain payments, there is still an outstanding amount of approximately $4.4 million that remains unpaid. Despite this, SpiceJet reaffirmed its commitment to fulfilling the settlement and assured the court of its intention to clear the remaining dues.
As a result of SpiceJet’s assurance, the Supreme Court postponed the hearing on the contempt petition filed by Credit Suisse. The court’s decision grants the airline additional time to meet its financial obligations and settle the dispute with Credit Suisse.
This development highlights the ongoing financial challenges faced by SpiceJet, which has been grappling with the impact of the COVID-19 pandemic on the aviation industry. The court’s decision provides some respite to the cash-strapped airline as it works towards resolving its outstanding debts.
With the extended deadline of July 18 set by the Supreme Court, all eyes will be on SpiceJet to fulfill its commitment and make the necessary payments to Credit Suisse. The successful resolution of this dispute will be crucial for the airline’s financial stability and its ability to regain momentum in the highly competitive aviation market.
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