Low-cost carrier SpiceJet has settled a dispute over non-payment of about $24 million (nearly Rs 181.11 crore) to Switzerland-based investment bank and financial services firm Credit Suisse AG.
The settlement involves payment of a certain amount upfront and the balance over a mutually agreed timeline, SpiceJet said in a statement. The airline, however, did not disclose the quantum of the payments.
The settlement and consent terms, executed on Monday, have also been filed before the Supreme Court for final orders. SpiceJet has also provided a bank guarantee of $5 million following the direction of the Madras High Court, and there is no adverse financial liability on the company.
The settlement with Credit Suisse follows SpiceJet’s successful settlements with De Havilland Aircraft of Canada (DHC), Boeing, CDB Aviation, BOC Aviation and Avolon. This also provides an “impetus to normalisation, growth and expansion of the airline”, it added.
The issue dates back to 2021, when Credit Suisse dragged SpiceJet to court over non-payment of dues of about $24 million. In December 2021, the Madras HC had ordered winding up of SpiceJet over non-payment of dues, as the carrier had admitted to the liability, but failed to provide any “bona fide” reasons for the default. The court had also provided time for the carrier to avail legal remedies and directed it to deposit $5 million.
SpiceJet later got a stay from the SC on the winding-up petition.
According to the petition filed by Credit Suisse, SpiceJet had availed SR Technics, another Switzerland-based firm for maintenance, repair and overhauling (MRO). The 10-year agreement was signed on November 24, 2011, and later on August 24, 2012, a supplemental agreement was signed with certain changes. The amendments included extension of time for payment of monies due under various invoices raised by SR Technics and also a deferred payment scheme, which was duly accepted by SpiceJet. Later, SR Technics transferred the rights of receiving the payments to Credit Suisse.
According to Credit Suisse, SpiceJet had also admitted to the dues under seven invoices and declined to pay, following which it approached the Madras HC, seeking liquidation under the Companies Act.