SpiceJet Pays USD 1.5 Million To Credit Suisse In Compliance With Supreme Court Order

SpiceJet said on Friday that it has paid $1.5 million to Credit Suisse in compliance with the Supreme Court Order.

“SpiceJet Ltd. has complied with the directive of the Supreme Court by remitting $1.5 million to Credit Suisse," the airline said in an exchange filing. The payment was completed on Thursday, September 14.

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On Monday, the Supreme Court had ordered the airline to settle a $1.5 million debt owed to Switzerland's Credit Suisse bank by September 15, and also warned of ‘drastic action’ if the payment is not being made on time.

Some reports suggest that a third of the amount is part of a monthly settlement plan SpiceJet had previously agreed with Credit Suisse, and the rest are unpaid dues to the bank.

In March, Credit Suisse had filed a request with the apex court to start contempt proceedings against SpiceJet and its founder and promoter Ajay Singh. This action was taken in response to alleged deliberate and willful non-compliance with court orders and their failure to fulfill a $3.9 million debt as outlined in a previous settlement agreement between the involved parties.

SpiceJet has argued that the outstanding debt in question predates the current management's tenure. The legal dispute between Credit Suisse and SpiceJet dates back to 2015, mainly centered on Credit Suisse's claim of unpaid dues totaling around $24 million.

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The shares of Spicejet were trading 1.30% higher at Rs 38.80 per piece on BSE, at the time of writing this article. The stock had opened at Rs 40 per share in the early morning trade on Friday.