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SpiceJet settles $20 million payment dispute with Credit Suisse

aviation | Mar 31, 2022 2:16 PM IST

SpiceJet settles $20 million payment dispute with Credit Suisse

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SpiceJet has confirmed settling their payment dispute with Credit Suisse. Credit Suisse had claimed outstanding dues of about USD 20 million.

SpiceJet has confirmed settling its payment dispute with Credit Suisse. Credit Suisse had claimed outstanding dues of about USD 20 million earlier and the Karnataka High Court had directed SpiceJet for winding up the airline as SpiceJet continued to refuse to acknowledge these outstanding dues.

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When the matter reached the Supreme Court, the court ordered that there are vendors claiming outstanding dues and those payments will have to be discharged.
The Supreme Court of India on Thursday also urged SpiceJet and Kalanithi Maran, former promoter of the airline, to consider settling their protracted share transfer dispute over talks. The court has allowed time till April 12 for SpiceJet and Maran-led Kal Airways to consider the settlement of the dispute.
Background
SpiceJet had entered into a ten-year agreement with Swiss-based SR Technics in 2011, which in 2012 had given Credit Suisse the right to receive payments on its behalf.
The Swiss company was expected to maintain, repair, and overhaul aircraft engines, modules, components, and parts. It is now claiming the airline owes it some $25 million for its services. But having failed to meet its financial obligations, Credit Suisse raised a statutory notice but go no response from the airline carrier.
However, SpiceJet claimed that the petitioner is not a creditor of SpiceJet and it shares no contractual relationship of debtor-creditor with them. It is arguing the alleged debt is not legally enforceable and hence the winding-up order has no basis.
The airline carrier also claimed SR Technics did not secure necessary approvals from the Director-General of Civil Aviation, India's aviation regulator, between 2009 to 2015.
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