SpiceJet inks pact with Credit Suisse on $24-million dispute

In a separate case, top court asks airline to settle share-purchase dispute with Marans by Apr 12

SpiceJet has entered into an in-principle settlement with Credit Suisse, saving itself from possible liquidation.

“The parties have now reached an in-principle commercial settlement of the dispute and the process of documentation is underway. SpiceJet has already deposited $5 million on the direction of the Madras High Court in the Credit Suisse case and there is no adverse financial liability on the company. The settlement involves payment of an amount over a mutually-agreed period of time,” the airline said in a statement on Thursday.

Last December, the high court had ordered the winding up of SpiceJet for failing to make payment of $24 million to Swiss maintenance company SR Technics. 

Credit Suisse had a financing agreement with SR Technics that gave it the right to receive payments from the airline. 

The high court had stayed its order for three weeks and directed the airline to deposit $5 million.

SpiceJet then challenged the high court order in January in the Supreme Court, which gave it three weeks to negotiate a settlement. 

SpiceJet said its agreement with Credit Suisse follows successful settlements with De Havilland Aircraft of Canada and aircraft lessors — CDB Aviation and Avolon.

Meanwhile the long-drawn share dispute between SpiceJet’s Ajay Singh and the airline’s former promoter Kalanithi Maran and his KAL Airways saw a fresh development in the Supreme Court on Thursday.

The top court asked both the parties to look for a full and final settlement of around Rs 900 crore, by April 12, when the case will be heard next. 

The chief justice inquired from SpiceJet counsel as to why the company is not paying the money to the decree holder and settling the matter.

The tussle dates back to 2015 when Maran sold his 58.46 per cent stake, or 50.4 million shares, in SpiceJet to Singh for a nominal Rs 2 after the airline was hit by financial trouble. 

In 2016, Maran approached the Delhi High Court, citing a breach of the agreement by Singh for not issuing him 189 million share warrants and preference shares, despite his Rs 679-crore infusion.