SpiceJet ordered to clear Credit Suisse dues by March 15
The Supreme Court of India has instructed SpiceJet to pay $1.25 million to Credit Suisse AG by March 15 to settle its dues before the next hearing. The court expressed concerns about SpiceJet's ability to bid for Go First while not paying its dues to Credit Suisse. "We're giving you a long rope, don't take any risks in this matter," the apex court warned SpiceJet.
Dispute over arrears and belated payments
SpiceJet argued that it had already paid the $1.25 million arrears, albeit late. However, the top court countered, "There is no scope of any belated payment in this case. Therefore, Credit Suisse is justified in saying that the amounts have not been paid." Senior advocate Siddhartha Dave, representing Credit Suisse, informed the court that as of February 15, the budget airline was in default of $1.25 million.
Court orders and ongoing legal claims
In September, the Supreme Court directed SpiceJet to deposit $500,000 toward its monthly obligations and an additional $500,000 every month for six months to clear its arrears. The airline is currently facing multiple legal claims over non-payment of dues, including petitions to initiate insolvency proceedings. Despite these challenges, SpiceJet CMD Ajay Singh has personally bid for grounded low-cost carrier Go First.
Background of the dispute and settlement
The conflict originates from a 2011 aircraft maintenance agreement between SpiceJet and Switzerland-based SR Technics. SR Technics later entered a financing agreement with Credit Suisse, granting the bank the right to receive payments for invoices raised against SpiceJet for maintenance and repair of aircraft. In December 2021, the Madras High Court ordered the winding up of SpiceJet due to its failure to clear debt owed to Credit Suisse, leading to a court-approved settlement.
