SpiceJet, Credit Suisse file final dispute settlement in SC
The airline had provided bank guarantee worth $5 million after the Madras High Court order in the matter and no advance financial liability is pending with the company
- May 25, 2022,
- Updated May 25, 2022 10:35 AM IST
Budget carrier SpiceJet and Switzerland-based investment banking company Credit Suisse have signed and concluded the settlement and consent terms with regard to the pending dispute between the two parties. The settlement documents have also been filed before the Supreme Court for final orders.
The airline had provided bank guarantee worth $5 million after the Madras High Court order in the matter and no advance financial liability is pending with the company, as per the official SpiceJet release. The release also mentions that this settlement comprises payment of certain amount upfront and balance amount over a mutually agreed deadline.
It further read, “The settlement with Credit Suisse follows SpiceJet’s successful settlements and performances therein with De Havilland Aircraft of Canada Limited (DHC), Boeing, CDB Aviation, BOC Aviation and Avolon and provides an impetus to normalisation, growth and expansion of the airline.”
For the unversed, Credit Suisse had taken SpiceJet to the Madras High Court in 2021 after the airline could not make payments worth for aircraft maintenance, repairs and other services by SR Technics in Switzerland through an agreement that had a decade-long lifetime in 2011.
Both these parties signed a supplemental agreement in 2021 which allowed them to repay the amount raised by SR Technics. The company raised invoices, seven corresponding Bills of Exchange and the acknowledgement of debts, which later became a matter of contention before the high court.
Credit Suisse AG was assigned the rights to receive payments due to SRT in 2012 via financial agreement, which allowed the third party to receive payments from SpiceJet under the seven invoices raised by SRT. The Swiss financial services firm noted that SpiceJet did not repay the amount due as per the invoices despite repeated requests.
Budget carrier SpiceJet and Switzerland-based investment banking company Credit Suisse have signed and concluded the settlement and consent terms with regard to the pending dispute between the two parties. The settlement documents have also been filed before the Supreme Court for final orders.
The airline had provided bank guarantee worth $5 million after the Madras High Court order in the matter and no advance financial liability is pending with the company, as per the official SpiceJet release. The release also mentions that this settlement comprises payment of certain amount upfront and balance amount over a mutually agreed deadline.
It further read, “The settlement with Credit Suisse follows SpiceJet’s successful settlements and performances therein with De Havilland Aircraft of Canada Limited (DHC), Boeing, CDB Aviation, BOC Aviation and Avolon and provides an impetus to normalisation, growth and expansion of the airline.”
For the unversed, Credit Suisse had taken SpiceJet to the Madras High Court in 2021 after the airline could not make payments worth for aircraft maintenance, repairs and other services by SR Technics in Switzerland through an agreement that had a decade-long lifetime in 2011.
Both these parties signed a supplemental agreement in 2021 which allowed them to repay the amount raised by SR Technics. The company raised invoices, seven corresponding Bills of Exchange and the acknowledgement of debts, which later became a matter of contention before the high court.
Credit Suisse AG was assigned the rights to receive payments due to SRT in 2012 via financial agreement, which allowed the third party to receive payments from SpiceJet under the seven invoices raised by SRT. The Swiss financial services firm noted that SpiceJet did not repay the amount due as per the invoices despite repeated requests.