The Supreme Court on Monday asked SpiceJet to settle a $1.5-million debt owed to Swiss firm Credit Suisse by September 15. “There is no scope of belated payment. The respondent is not justified in saying so. The very fact that the respondent is in default is apparent from the dateline given,” the SC observed.
The apex court had in September allowed SpiceJet to clear arrears of the Swiss financial services firm over a dispute settlement in six months. The airline was supposed to pay Credit Suisse $500,000 a month towards the arrears, in addition to the scheduled monthly payment of $500,000 that SpiceJet was already making. After clearing the arrears of $3 million over six months, SpiceJet was to continue paying $500,000 towards the monthly instalments, the court had then said.
The Supreme Court also took notice notice of the fact that SpiceJet has bid for bankrupt carrier Go First. “This is how economy works,” the court said while asking chairman and managing director, Ajay Singh, to be present before it on March 22, the next date of hearing. Singh submitted a joint bid for Go First, which ceased operations over nine months ago, along with Busy Bee Airways. This development comes amid SpiceJet’s financial challenges, with efforts to secure funds and streamline expenses, including the termination of over 1,000 employees.
“SpiceJet’s role as the operating partner for the new airline involves providing essential staff, services and industry expertise. This collaboration is anticipated to generate synergies between the two carriers, leading to improved cost management, revenue growth and a strengthened market position within the Indian aviation industry,” Singh had said in a statement on February 16.