SpiceJet has announced that it has completed the payment of $1.5 million to Credit Suisse as required by the Supreme Court. The payment was executed on September 14, fulfilling the directive of the Supreme Court. SpiceJet had previously agreed to a monthly settlement plan with Credit Suisse, and the outstanding dues were related to the bank’s claims of unpaid debts totaling around $24 million. The legal dispute between Credit Suisse and SpiceJet dates back to 2015, with Credit Suisse seeking to initiate contempt proceedings against the airline and its chief, Ajay Singh, for non-payment of dues.
SpiceJet’s compliance with the Supreme Court’s directive is a significant development in this long-standing legal battle and provides some relief to the airline as it continues to address its financial challenges. The payment of $1.5 million to Credit Suisse follows SpiceJet’s recent completion of payment of Rs 100 crore to former promoter Kalanithi Maran’s KAL Airways as per the Delhi High Court’s order regarding the execution of an arbitral award in a separate case.
The airline’s shares gained over three percent following the announcement, signaling a positive response from investors. SpiceJet’s stock has seen fluctuations but has rallied over the past month and gained in the last six months, albeit with a modest year-to-date increase.
The completion of these payments is likely seen as a step toward resolving outstanding legal disputes and addressing financial challenges for SpiceJet, although the airline still faces broader industry headwinds and operational issues in the competitive Indian aviation market.
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