Low-cost carrier SpiceJet on Thursday said it has settled its payment dispute worth around $20 million with Credit Suisse.
Both parties have reached an “in-principle commercial settlement” of the dispute and the process of documentation is underway, a statement issued by the airline said.
“The settlement with Credit Suisse follows SpiceJet’s successful settlements with De Havilland Aircraft of Canada (DHC), Boeing, and aircraft lessors CDB Aviation and Avolon,” it said.
The airline added that it had already deposited $5 million on the direction of the Madras High Court in the Credit Suisse case and there is no adverse financial liability on the company.
The Swiss firm Credit Suisse had moved the Madras High Court against SpiceJet after the airline availed the services of SR Technics, Switzerland, for maintenance, repair, and overhauling of aircraft engines, modules, components, assemblies, and parts, which were mandatory for its operations, but failed to make the required payments.
On Thursday, SpiceJet shares closed 0.55 per cent lower at ₹54.40 apiece on the NSE.
In a related development, the Supreme Court asked SpiceJet and Kalanithi Maran to amicably settle the share transfer dispute between the two. The Supreme Court will hear the matter next on April 12.
Expansion of ECLGS
Meanwhile, SpiceJet Chairman and Managing Director Ajay Singh issued a statement welcoming the modifications that the Centre has introduced in the Emergency Credit Line Guarantee Scheme (ECLGS).
“We had requested the Finance Minister to enhance the scope of ECLGS for the struggling aviation and hospitality sectors. We are very grateful that she has responded positively and quickly. This move will provide some relief and liquidity for these sectors that have been worst hit by the three waves of the pandemic,” he said.
The Finance Ministry had expanded the scope of the ₹5-lakh crore ECLGS to support MSMEs engaged in travel, tourism and hospitality sectors to overcome the impact of the COVID-19 pandemic impact. As per the latest modification, new borrowers in the sectors covered under ECLGS 3.0, who have borrowed between March 31, 2021, and January 31, 2022, will now be eligible to avail the credit facilities.
The credit limit for eligible borrowers has been increased to 50 per cent of their fund-based credit outstanding (up from 40 per cent). The enhanced limit is subject to a maximum of ₹200 crore per borrower.
Keeping in view the high proportion of non-fund based credit in the overall credit of the civil aviation sector, the ministry said eligible borrowers in the civil aviation sector are now permitted avail of non-fund based emergency credit facilities as well under ECLGS 3.0.