Low-cost carrier SpiceJet on Wednesday, May 25 said that it has signed and concluded the settlement and consent terms with Credit Suisse in a pending dispute with the latter.
The settlement and consent terms, executed on May 23, have also been filed before the Supreme Court for final orders, the airline said in a statement.
The airline said it had already provided a bank guarantee of USD 5 million under the direction of the Madras High Court in the matter and there is no adverse financial liability on the company.
The settlement involves payment of a certain amount up front and the balance amount over a mutually agreed timeline, SpiceJet said without giving specific details.
The settlement with Credit Suisse follows SpiceJet’s successful settlements and performances therein with De Havilland Aircraft of Canada Limited (DHC), Boeing, CDB Aviation, BOC Aviation and Avolon and provides an impetus to normalisation, growth and expansion of the airline.
On March 31, SpiceJet informed the Supreme Court of having settled the payment dispute with Credit Suisse. The disclosure had come during a court hearing on another case involving the airline.
In a statement that was issued shortly thereafter, SpiceJet had said that the “parties have now reached an in-principle commercial settlement of the dispute and the process of documentation is underway.”
It was this payment dispute with Credit Suisse that led to the Madras High Court ordering the winding-up of SpiceJet. The airline had approached the Supreme Court in appeal and secured a respite from the top court by way of a stay order in January this year.
The court had granted time to the airline to proceed with its negotiations in an attempt to settle the dispute.
The dispute pertained to the non-payment of dues by SpiceJet to Switzerland-based SR Technics, which undertakes maintenance, repair and overhauling of Air Craft for airlines. SpiceJet had defaulted on payment of dues to the tune of USD 20 million.
Credit Suisse moved against SpiceJet and pressed a winding-up plea against the airline before the Madras High Court which allowed the same. The winding-up order was upheld by a high court bench of higher strength and an appeal against this ultimately came before the Supreme Court.
SpiceJet operates a fleet of Boeing 737s, Q400s & freighters and is the country’s largest regional player operating 63 daily flights under UDAN or the Regional Connectivity Scheme.