Low-cost carrier SpiceJet and Swiss investment bank Credit Suisse have decided to end a legal battle between them and have signed and entered into settlement and consent terms regarding an ongoing litigation.
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The settlement and consent terms, executed on May 23, 2022, have also been filed in the Supreme Court of India for final orders. “SpiceJet had previously provided a bank guarantee of $5 million on instruction from the Madras High Court in this matter and there is no adverse financial liability for the company. The settlement involves the payment of a certain amount to the advance and the balance within a mutually agreed period,” a statement from SpiceJet read.
The legal dispute began when Credit Suisse took SpiceJet to the Madras High Court in 2021 after the airline failed to make payments of more than $24 million. This amount was pending payment to the Swiss maintenance, repair and overhaul (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 liquidation of SpiceJet for failing to pay $24 million to SR Technics. The high court suspended its order for three weeks and ordered the airline to deposit $5 million.
“The settlement with Credit Suisse follows SpiceJet’s successful agreements and performance with De Havilland Aircraft of Canada Limited (DHC), Boeing, CDB Aviation, BOC Aviation and Avolon and provides momentum for standardization, growth and expansion of the airline,” the statement said. mentioned.