Aviation News

SpiceJet completes $1.5 million payment to Credit Suisse, shares rise, ET Infra


SpiceJet today said they have completed payment of $1.5 million payment to Credit Suisse, days after India’s apex court came down heavily on the budget carrier’s chairman Ajay Singh to make the payment or go to Tihar jail.

“SpiceJet Ltd. has complied with the directive of the Supreme Court by remitting $1.5 million to Credit Suisse. The payment was executed on Thursday, September 14th,” the company said in a statement.

SpiceJet’s shares were up 2.9% at 39.49 rupees apiece on the BSE.

Earlier this week, Supreme Court had asked Singh to make a payment of $5,00,000 towards an instalment to Credit Suisse by September 22, along with $1 million towards the defaulted amount.

The court had further warned Singh that he would be sent to Tihar jail if the payment wasn’t made.

Credit Suisse in March approached the top court seeking to initiate contempt proceedings against Singh and SpiceJet over “a wilful and intentional disobedience” of court orders and failure to pay dues of several million dollars as per a settlement between the two sides, a court filing shows.

Credit Suisse and SpiceJet have been engaged in a legal dispute since 2015 over Credit Suisse’s claim of unpaid dues of around $24 million, which led to the Madras High Court’s order that the airline be wound up in 2021. In an appeal against the high court order, the top court suspended the winding-up proceedings, allowing both parties to discuss a settlement.

In August 2022, both sides informed the top court that they had agreed to settle the dispute.

But subsequently, in March, Credit Suisse filed a contempt case against managing director Ajay Singh, with the company secretary and the airline saying they had failed to pay dues as per the terms of settlement.

  • Published On Sep 15, 2023 at 11:19 AM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Get updates on your preferred social platform

Follow us for the latest news, insider access to events and more.


Source link