Spice Jet settles $20 Million dispute with Credit Suisse

Spice Jet settles $20 Million dispute with Credit Suisse (Source: Money Control)
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Dharamjot Kaur

The aviation giant that found itself in a financial dispute with a Swiss firm, Credit Suisse, has confirmed that it has settled the $20 Million dispute, after orders from the Supreme Court at the end of January.

The Apex court had put a stay on Madras HC’s order to SpiceJet on winding up the airline, as it continued to refuse acknowledgement of these outstanding dues claimed by the Swiss firm. In a statement, Spice Jet said, that given the current dispute between Credit Suisse and  SpiceJet Limited they were pleased to inform that the parties have agreed on an in-principle commercial settlement of the issue and the documentation process is underway.

SpiceJet had already deposited $5 million in the Credit Suisse case at the request of the Madras High Court, and the company has no financial liabilities. It was stated that the settlement entails payment of the settlement sum over a mutually agreed-upon period of time.

According to Credit Suisse, the aviation firm had availed numerous services from SR Technics (Switzerland), including repair and maintenance, an overhaul of aircraft components and parts that were inevitable for its operations, after entering into a contract with the company, for a period of 10 years, in 2011.

Having failed to meet payment deadlines, Credit Suisse was compelled to file a statutory notice against the airline. However, SpiceJet contested that the aircraft maintenance organization did not possess valid DGCA authorization and stopped payments once it gained wind of this fact.

Post the final ruling by the Supreme Court on payment obligation by the budget airline, the settlement with Credit Suisse follows SpiceJet’s settlements with De Havilland Aircraft of Canada Limited (DHC), Boeing, aircraft lessors CDB Aviation and Avolon.

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