'No more extensions, SpiceJet must pay Credit Suisse'
₹10,000 crore, and an expected compensation from engine manufacturer Pratt & Whitney for faulty engines. The legal dispute with Credit Suisse traces back to November 2011 when SpiceJet, then under the ownership of Kalanithi Maran, entered into a 10-year aircraft servicing agreement with SR Technics, a Swiss company providing maintenance, repair and overhaul services for aircraft.
The Swiss firm had issued invoices based on work done, while SpiceJet issued seven bills of exchange to cover the amount. In September 2012, SR Technics formally handed over all rights to receive payments under the SpiceJet deal to Credit Suisse.
However, the airline failed to make payments and ran up dues of over $24 million, prompting Credit Suisse to file a winding-up petition against SpiceJet in 2021. (Ajay Singh took back ownership of the airline from Maran in 2015.) In January 2022, the Madras high court turned down an appeal by SpiceJet against a December 2021 order by a single-judge bench to wind up its operations after the airline failed to pay up the $24 million it owed.
When the matter moved to the Supreme Court, the apex court stayed a Madras high court order directing the winding-up of SpiceJet, and gave the airline some time to resolve its dispute with Credit Suisse AG. That process is yet to come to closure.
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