SpiceJet and Credit Suisse Reach Settlement; Airline shares close down 0.7%

0

SpiceJet has signed and reached a $24 million settlement with Swiss investment bank Credit Suisse over a commercial dispute. The two parties reached terms of settlement and consent regarding the ongoing dispute on May 23, 2022, the company said. The final settlement has been filed in the Supreme Court of India for final orders, he added. Shares of SpiceJet closed down 0.7% on Wednesday.

In a statement on Wednesday, the airline said it had already provided a $5 million bank guarantee on the Madras High Court management in the case, adding that there was no adverse financial liability for the company. The settlement involves paying a certain amount upfront and the balance within a mutually agreed time frame, SpiceJet said, without specifying the time frame.

The incident relates to a liquidation case the Swiss company had filed against SpiceJet in the Madras High Court which could have resulted in the air carrier’s eventual liquidation. The case was filed against Spicejet for allegedly failing to honor certain maintenance, repair and overhaul invoices for aircraft engines and components in 2013.

The high court had ordered the liquidation of SpiceJet and ordered its official liquidator to take over the assets of the airline. However, the Supreme Court, following SpiceJet’s appeal, suspended HC’s order and ordered the airline to settle the case with Credit Suisse.

“The settlement with Credit Suisse follows SpiceJet’s successful settlements and performance with De Havilland Aircraft of Canada Limited (DHC), Boeing, CDB Aviation, BOC Aviation and Avolon and provides momentum for standardization, growth and development. ‘airline expansion,’ the company said. mentioned.

In April, the low-cost carrier said the ongoing dispute between Credit Suisse and SpiceJet had now reached a commercial settlement in principle and the documentation process was underway.

Share.

Comments are closed.