SpiceJet, the low-cost carrier, has confirmed the payment of $1.5 million to Credit Suisse in compliance with the Supreme Court’s directive. The payment was successfully executed on September 14th.
This action comes in response to the Supreme Court’s order on September 11th, demanding that SpiceJet pay $1.5 million to Credit Suisse by September 15th. The case revolves around unpaid dues, with the court warning of unspecified “drastic action” if the airline failed to comply.
Spicejet’s shares soared by 3.57 per cent at 10.18 a.m. after the company completed the payment to Credit Suisse.
A portion of the $1.5 million payment is related to a monthly settlement plan previously agreed upon by SpiceJet and Credit Suisse, while the remainder represents unpaid dues accrued since 2022 due to the airline’s failure to meet payment schedules.
Also Read | Legal troubles hover around SpiceJet
SpiceJet has consistently argued that the Credit Suisse debt predates its current management. This legal dispute between the airline and the bank has been ongoing since 2015, resulting in the Madras High Court’s order for the airline’s winding up in 2021.
Despite prior settlement agreements, SpiceJet failed to meet its dues obligations, leading Credit Suisse to approach the Supreme Court in March to seek contempt proceedings against SpiceJet and its Chief, Ajay Singh, citing “wilful and intentional disobedience” of court orders and unpaid dues totalling $4.5 million.
Additionally, SpiceJet recently reported the completion of a payment of Rs. 100 crore to former promoter Kalanithi Maran’s KAL Airways, in accordance with the Delhi High Court’s order concerning an arbitral award in a separate case.