How much does SpiceJet need to pay Credit Suisse, and why?

Additionally, SpiceJet has completed its payment of ₹100 crore to Kalanithi Maran as per the Delhi High Court’s directive, resolving a long-standing dispute between the airline and its former promoter.

What is SpiceJet-Credit Suisse case?

The Supreme Court on Monday sternly ordered the SpiceJet chairman Ajay Singh to make a payment of $500,000 towards a Credit Suisse installment by September 22 and an additional $1 million for a defaulted amount. In case, the company fails to make the payment there will be ‘drastic action’, hinting that he might face imprisonment at Tihar jail.

“Enough of this dilly-dally business … We are not bothered even if you die,” one of the two judges said during the hearing, which was attended by SpiceJet chief Ajay Singh, reported Reuters.

The court has also ordered Singh to be present for all the hearings in the future. 

Since 2015, Credit Suisse and SpiceJet have been entangled in a legal battle concerning Credit Suisse’s assertion of unpaid dues totaling approximately $24 million. This dispute led to the Madras High Court’s order to wind up the airline in 2021. 

However, the top court has temporarily suspended the winding-up proceedings following an appeal, permitting both parties to seek a settlement. In August 2022, both sides informed the top court of their agreement to settle the dispute. 

Nevertheless, in March 2023, Credit Suisse filed a contempt case against SpiceJet’s managing director, Ajay Singh, alleging non-compliance with the settlement terms in payment of the dues.

“SpiceJet acknowledges the legal process and is committed to complying with all court directives and obligations in the Credit Suisse matter and will make the payment of $1.5 million as per the court directive. Till date, SpiceJet has already paid a total of $8 million to Credit Suisse as per consent terms,” the airline said in a filing this morning.

“SpiceJet remains committed to the highest standards of transparency and legal compliance. This liability is an old one and predates the current Promoter taking over the company,” the filing said

SpiceJet pays off Kalanithi Maran

Meanwhile, SpiceJet on Tuesday completed its payment to Kalanithi Maran, as promised. On Monday, the company said it would pay the full amount to the former promoter by today (September 12), following the directives of the Delhi High Court. 

The airline earlier confirmed that it has already disbursed ₹77.5 crore to Maran and will make an additional payment of ₹22.5 crore by the specified deadline.

This dispute stems from a 2015 agreement in which Maran and his investment vehicle, KAL Airways, transferred their majority stake in SpiceJet to Singh while alleging unfulfilled warrants and preference shares. Subsequently, Maran initiated arbitration proceedings against SpiceJet and Singh.

Updated: 12 Sep 2023, 03:37 PM IST