SpiceJet, Credit Suisse settle spat
SpiceJet on Wednesday said it has signed and concluded the settlement and consent terms with Credit Suisse, which has alleged non-payment of dues by the airline and sought its liquidation before the courts.
The low-cost carrier further disclosed that the settlement and consent terms, which was executed on May 23, has been filed before the Supreme Court for its final orders. The settlement involves the payment of certain amount upfront and the balance amount over a mutually agreed timeline, the airline said without giving any further details.
``SpiceJet had already provided bank guarantees of $5 million on the direction of the Madras High Court in the matter and there is no adverse financial liability on the company."
"The settlement with Credit Suisse follows SpiceJet’s successful settlements and performances therein with De Havilland Aircraft of Canada Limited (DHC), Boeing, CDB Aviation, BOC Aviation and Avolon and provides an impetus to normalisation, growth and expansion of the airline,’’ the company said in a regulatory filing to the stock exchanges today.
Earlier this year, the apex court had granted three weeks to the airline to resolve the financial dispute with Credit Suisse even as it stayed the Madras High Court order to wind up the airline.
SpiceJet had moved the top court against the January 11 order of a division bench of the high court upholding a recent verdict of the single judge ordering its winding up and directing the official liquidator attached to the high court to take over the assets.
Credit Suisse AG had moved the single-judge bench alleging that SpiceJet failed to honour its commitment to pay the bills for over $24 million raised by it towards maintenance, repairing, and overhauling of the aircraft engines and components.
Shares of SpiceJet on Friday ended almost unchanged at Rs 49.25 as against its previous close of Rs 49.70 in the BSE.