SpiceJet-Credit Suisse Dispute: Supreme Court Grants Breather To Airline

The Supreme Court granted a breather to SpiceJet Ltd. on Wednesday in the contempt petition by Credit Suisse Group AG against the cash-strapped airline, for failing to pay its dues in accordance with a court-approved settlement agreement.

Although SpiceJet has made some payments, the Swiss investment banking firm informed the court that the airline is still in contempt of court since it owes $4.4 million to the bank.

SpiceJet told the top court that it would continue making payments of $5,00,000 to Credit Suisse on the 15th of every month, totaling an additional $1.5 million by August.

In this backdrop, the apex court adjourned the case to July 18, the day when it would examine the veracity of the assurances made by the airline.

In May last year, SpiceJet and Credit Suisse had entered into a settlement agreement, which was subsequently approved by the top court. 

The dispute stemmed from an aircraft maintenance agreement that SpiceJet entered with Switzerland-based SR Technics in 2011. SR Technics later entered into a financing agreement with Credit Suisse, granting it the right to receive payments for the invoices raised against SpiceJet for maintenance and repair purposes.

In December 2021, the Madras High Court had ordered the winding up of SpiceJet on grounds that it failed to clear debt owed to Credit Suisse.

This led to the matter landing up in the top court, where both sides finally agreed to settle the dispute.