SpiceJet cleared all outstanding dues: Credit Suisse tells Supreme Court

Swiss financial services firm Credit Suisse on Friday told the Supreme Court that SpiceJet has cleared all its outstanding dues in the $24 million payment dispute.

The apex court took note of the submission and listed the matter for hearing in July to ensure that the airline doesn’t “default again”.

“Matter should be taken up after three months to ensure that they don’t default as they have been doing in the past,” the Court said. 

Credit Suisse and SpiceJet have been entangled in a legal conflict since 2015 over outstanding debts of approximately $24 million.

The apex court had last month told the airline to pay $1.25 million by March 15 in addition to its monthly payments.

In September last year, the court permitted SpiceJet to pay the Swiss firm an extra $3 million in six months to settle its dues. SpiceJet was already paying Credit Suisse $500,000 per month and the court directed it to pay an additional $500,000 per month for six months. 

“You have the money to buy Go First but not to pay Credit Suisse,” the Supreme Court had on February 19 asked SpiceJet Chairman and Managing Director Ajay Singh while directing him to shell out the outstanding dues to the Swiss firm by March 15.

SpiceJet promoter Ajay Singh and Busy Bee Airways Private Ltd (BBAPL) have jointly submitted a bid for insolvent airline Go First, which had ceased operations in May last year.

In August 2022, both Credit Suisse and SpiceJet had informed the SC of reaching an agreement.

However, in March 2023, Credit Suisse filed a contempt case against Singh and the airline, saying that SpiceJet had not honoured its payment obligations outlined in the settlement terms.

In 2011, the airline had entered into a 10-year contract with Swiss maintenance firm SRT Technics for aircraft servicing. In 2012, SRT transferred its right to recover the payment for maintenance to Credit Suisse.

While SpiceJet has recently raised some fund, the airline has been facing a cash crunch for several quarters. It is also dealing with multiple court cases regarding money owed to former owner Kalanithi Maran, financial services firm Credit Suisse, aircraft lessors, and engine lessors. 

First Published: Mar 22 2024 | 7:30 PM IST