SpiceJet Gets Breather From Supreme Court As Legal Troubles Pile Up

SpiceJet received some respite from its ballooning legal troubles after the Supreme Court adjourned a plea by Credit Suisse against the troubled airline.

What Happened? Credit Suisse is arguing that the country’s top court should find the budget carrier in contempt of court over unpaid dues worth $4.9 million as per a settlement approved by the court.

SpiceJet told the court that it would pay Credit Suisse on the 15th of each month and asked the court to adjourn the case by two months, which the latter agreed to.

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The dispute goes back to a unpaid dues under a engine maintenance and repair agreement that was signed in 2011.

Mounting Troubles: Meanwhile, Ireland-based Aircastle, which is seeking bankruptcy proceedings against the low-cost airline, told the country’s company law tribunal that the settlement SpiceJet had offered it was not good enough. The airline owes its lessor around around ₹50 crore, Reuters reported, citing sources.

Last week, SpiceJet had rubbished speculation that the firm was dangerously close to insolvency after competitor Go First was awarded bankruptcy protection. SpiceJet also said it was in active talks with investors to raise funds. 

The company had also said it will use $50 million in funds received from the government’s emergency credit line guarantee scheme and internal cash accruals to get 25 grounded planes flying again.

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Posted In: EquitiesNewsLegalMarketsAircastleCredit SuisseSpiceJet