SC permits SpiceJet to resolve the $24 million in unpaid debt with Credit Suisse.
SpiceJet informed the court that it has settled a $24 million disagreement with Swiss investment banking firm Credit Suisse AG, and the Supreme Court on Thursday authorised the airline to drop its appeal against the winding up order issued by the Madras High Court.
As per the provisions of the consent order, the highest court further ordered SpiceJet to request the release of its $5 million bank guarantee from the HC.
According to the consent conditions, a settlement was reached on May 23, 2022. Due to this, the settlement has been accepted by both parties, who wish to revoke the petitioner's exceptional leave request (SpiceJet).
As a result, the application is approved, the bench led by Chief Justice NV Ramana ruled, and it instructed the parties to follow the conditions of the consent.
The SC had previously requested that SpiceJet settle its dispute with Credit Suisse AG and had postponed the HC's judgement allowing the low-cost carrier to be wound up.
SpiceJet has appealed the High Court's decision on January 11 enabling Credit Suisse to initiate a winding-up petition against the airline due to a $24 million debt. Additionally, the HC has instructed the official liquidator to seize SpiceJet's assets.
For failing to pay some invoices collected for more than $24 million toward payment of maintenance, repair, and overhaul of the aircraft engines and components in 2013, the Swiss business had initiated a winding-up lawsuit against the airline.
On SpiceJet's appeal, the highest court, however, had suspended the HC judgement and instructed the airline to resolve the dispute with Credit Suisse.
The Swiss engine repair company SRT Technics and the airline had agreed to a 10-year servicing agreement in November 2011, and in September 2012, SRT Technics sold Credit Suisse the right to receive payments under the agreement.
Through a financial arrangement, Credit Suisse was given the authority to receive payments owing to SRT in 2012. This gave the third party the ability to accept payments from SpiceJet under the seven invoices issued by SRT.
Credit Suisse had shifted the HC due to SpiceJet's failure to pay several payments generated in 2013.