SpiceJet completes payment of $1.5 million to Credit Suisse

Earlier, the SC issued a stern warning to SpiceJet Chairman and Managing Director (Ajay Singh for default in making the due payments to global investment bank and financial services firm Credit Suisse AG.

Budget airline SpiceJet on September 15 said it has fulfilled its obligation by transferring $1.5 million to Credit Suisse in accordance with the directive issued by the Supreme Court (SC), the company said in a regulatory filing.

"SpiceJet Ltd has complied with the directive of the Supreme Court by remitting $1.5 million to Credit Suisse. The payment was executed on Thursday, September 14th,” the airline said.

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Earlier this week, the apex court issued a stern warning to SpiceJet Chairman and Managing Director (CMD), Ajay Singh, for defaulting on payments owed to global investment bank and financial services firm Credit Suisse AG.

Also Read: SC sets payment deadline for Ajay Singh, warns of 'drastic measures' on failure to comply

The SC come down hard on Singh, warning him he will be sent to Tihar jail for non-compliance with its order on making payment to Credit Suisse AG.

The top court asked Singh to pay Rs 5,00,000 towards an instalment to the Swiss firm along with Rs 1 million defaulted amount.

A bench of Justices Vikram Nath and Ahsanuddin Amanullah observed: "We have to move to the next drastic step. We are not worried even if you shut down."

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The bench told Singh, "We are not bothered even if you die. We will send you to Tihar jail if you do not pay." The court's strong statement came during a hearing where it asked Singh and the SpiceJet secretary to be present and make the payment, with the matter being posted for further proceedings on September 22.

Also Read: SpiceJet spurts over 3% after completing payment of $1.5 million to Credit Suisse

In April 2023, Credit Suisse, a Swiss bank, initiated contempt of court against SpiceJet in the Supreme Court after its failure to comply with a court-approved settlement plan for the payment of dues.

SpiceJet and Credit Suisse entered into a settlement agreement in May 2022 to resolve a payment dispute that arose from SpiceJet's non-payment of dues to SR Technics, a Switzerland-based company that provides aircraft maintenance services. SpiceJet had defaulted on dues amounting to $20 million.

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Owing to this dispute, the Madras High Court ordered SpiceJet to be wound up. However, the SC stayed Madras HC’s order and ensured that the parties enter into a settlement.

During the course of the hearing, the top court orally observed that there is a clear contempt of court on Singh's part as he has not followed the terms of the May 2022 order.

On August 14, the SC issued a contempt notice to Singh on a plea filed by Credit Suisse, accusing the cash-strapped carrier of failing to comply with a court-approved settlement plan for payment of dues, adding to the Gurugram-based company's troubles.

Meanwhile, the low-cost airline on September 12 said it paid Rs 100 crore to Sun Group chairman and former promoter of the airline Kalanithi Maran, according to the direction of the Delhi high court on the arbitral award.