SpiceJet, Credit Suisse end legal battle, sign settlement and consent terms

The settlement and consent terms, executed on May 23, 2022 between SpiceJet and Credit Suisse have also been filed before the Supreme Court of India for final orders

Budget carrier SpiceJet and Switzerland-based investment banking company Credit Suisse have decided to put an end to a legal battle between them and have signed and cocluded settlement and consent terms with regard to a pending dispute.

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The settlement and consent terms, executed on May 23, 2022, have also been filed before the Supreme Court of India for final orders. “SpiceJet had already provided Bank Guarantee of $5 million on 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 certain amount upfront and balance amount over a mutually agreed timeline,” said a statement from SpiceJet.

The legal dispute started when Credit Suisse dragged SpiceJet to the Madras High Court in 2021 after the airline failed to make payments of over $24 million. This amount was pending payment towards Swiss maintenance, repair and overhauling (MRO) service provider SR Technics. Credit Suisse had a financing agreement with SR Technics that gave it the right to receive payments from the airline.

Last December, the high court ordered the winding up of SpiceJet for failing to make payment of $24 million to SR Technics. The high court stayed its order for three weeks and directed the airline to deposit $5 million.

“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,” the statement said.