NEW DELHI: In a major relief for SpiceJet and promoter Ajay Singh, the Supreme Court (SC) on Friday allowed the low-cost airline to make payments to Credit Suisse of $1 million per month for a duration of six months to clear its dues and arrears.
Following the completion of the six-month period, Singh and SpiceJet are required to pay regular instalments of $500,000 to Credit Suisse. “The Supreme Court has acknowledged our compliance with its previous orders and concurred with our proposal to settle the $3 million arrears over the forthcoming six months. This represents a positive outcome for the company and our stakeholders, and we extend our gratitude to the Court for its understanding,” said SpiceJet in a statement.
The fresh order comes after SpiceJet had transferred $1.5 million to Credit Suisse last week following a strict warning by the top court. Earlier this month, the SC had warned Singh of severe consequences, including jail time in Tihar, if he fails to respect the order related to clearing its due to the Swiss lender.
The legal dispute between the two pastries started when Credit Suisse dragged SpiceJet to the Madras High Court in 2021 after the airline failed to make payments of over $24 million to maintenance, repair and overhauling (MRO) service provider SR Technics. Credit Suisse had a financing agreement with SR Technics that gave it the right to receive payments from the airline.
In December 2021, the Madras High Court ordered the liquidation of SpiceJet after the airline failed to clear the debt owed to Credit Suisse. Then the matter was transferred to the top court.