SpiceJet and Credit Suisse settle $24 Million financial dispute

SpiceJet has reportedly announced the settlement of an ongoing commercial dispute of approximately $24 million with financial service company Credit Suisse.

For those unaware, the dispute was associated with failure of SpiceJet to pay bills to Credit Suisse. The controversy was fuelled by an old service contract inked in 2011 which came to the notice recently lacking several approvals resulting in the dispute between the two companies.

As of now, the budget carrier has agreed to pay the settlement total reaching $24 million over a mutually agreed time duration.

According to SpiceJet, both Credit Suisse and the airline are putting an end to the longstanding disagreement and has mutually agreed upon an in-principle commercial settlement notifying that the documentation process is underway.

It all started when Credit Suisse filed a case in the Madras High Court accusing SpiceJet of pending bill payments for the services used, including repair, maintenance, and overhauling of aircraft engines and components which surpass USD 24 million.

By the end of 2021, the high court ordered liquidation of the airline after which SpiceJet took matters to Supreme Court – which deferred from the high court order and granted three weeks to the budget carrier to reach a settlement over the commercial dispute.

Meanwhile, SpiceJet already deposited transaction worth $5 million adhering to the Hon'ble Madras High Court order in the Credit Suisse case with no adverse financial liability clause imposed on the company.

As per the statement, the settlement will foresee transaction of the amount throughout pre-determined timeline set by the two parties.

Incidentally, this is not the first settlement for SpiceJet - the airline has previously executed settlements with Boeing, De Havilland Aircraft of Canada Limited, along with aircraft lessors like Avolon, and CDB Aviation.

Source Credit: https://www.business-standard.com/article/companies/spicejet-settles-24-mn-financial-dispute-with-credit-suisse-122033100992_1.html