SpiceJet takes off after 3-week reprieve from Supreme Court

SpiceJet jumped 5.71% to Rs 63.90 after the media reported that the Supreme Court of India has granted a stay on the Madras High Court's order directing the winding up of SpiceJet.

According to the media report, the apex court has granted three weeks to SpiceJet to resolve the matter with Credit Suisse AG.

The matter pertains to a Madras High Court order that directed the winding up of SpiceJet after it failed to clear dues given by Credit Suisse. The airline is challenging unpaid dues to the tune of Rs 180 crore, claimed by Swiss Financial Services, Credit Suisse AG.

The SC stay order came after SpiceJet reportedly said that it was working something out and needed a little time.

SR Technics in Switzerland had reportedly carried out aircraft maintenance, repair and other services through an agreement with a lifetime of 10 years in 2011. SpiceJet and Credit Suisse signed a supplemental agreement in 2021 that enabled them to repay the amount raised by SRT. Credit Suisse AG had the rights to receive payments that were due to SRT in 2012 through a financial agreement. The agreement also entitled the third party to receive payments from SpiceJet under seven invoices that were raised by SRT. The Swiss firm stated that even after repeated requests SpiceJet shrugged off responsibilities to repay the money due as per the invoices, the media report suggested.

Spicejet reported a net loss of Rs 570.56 crore in Q2 FY22, higher than the net loss of Rs 105.61 crore posted in Q2 FY21. Net sales increased by 26.4% to Rs 1,304.52 crore in Q2 FY22 from Rs 1,031.66 crore posted in Q2 FY21.

SpiceJet is a low-budget air carrier. The airline operates a fleet of Boeing 737s, Q-400s & freighters and is the country's largest regional player operating 63 daily flights under UDAN or the Regional Connectivity Scheme. The airline also operates a dedicated air cargo service under the brand name SpiceXpress offering cargo connectivity across India and on international routes.

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