Credit Suisse Takes SpiceJet To SC Again Over Unpaid Dues

Swiss investment bank Credit Suisse has taken Indian airline SpiceJet to the Supreme Court again over the unpaid dues.

Credit Suisse on Friday filed a contempt of court case in the Supreme Court against SpiceJet airline alleging that the latter has failed to make a payment of dues amounting to $4.9 million as per a settlement that was previously approved by the apex court.

SpiceJet admitted before the court during the hearing that it had missed the deadlines for paying settlement dues and gave the assurance that one tranche would be paid on Friday itself. The airline has also stated that a third payment tranche will be made in May.

A payment issue was resolved in May 2022 by an agreement between SpiceJet Limited and Credit Suisse AG. The conflict arose because SpiceJet owes SR Technics, a company based in Switzerland that maintains, fixes and overhauls aircraft for airlines. SpiceJet was $20 million behind on their payments.

Madras High Court ordered the dissolution of SpiceJet as a result of this issue. The order was also affirmed by a larger High Court Bench. On the airline's appeal, Supreme Court granted it a reprieve by suspending the HC order in January 2022.

The apex court ordered that a settlement be reached between the parties rather than a trial. SpiceJet was obligated to pay a specific amount up front and the remaining amount over a mutually agreed upon timetable under the terms of a settlement agreement that was drafted in May 2022.

The settlement agreement was arrived at after SpiceJet's earlier conflicts with De Havilland Aircraft of Canada Limited (DHC), Boeing, CDB Aviation, BOC Aviation and Avolon were successfully resolved.