Spicejet shares jumped over 3% on Friday, following the airline’s announcement that it paid $1.5 million to Credit Suisse, adhering to the Supreme Court’s directive.
What Happened? On September 11, Spicejet, facing financial challenges, committed to paying $1.5 million to Credit Suisse, addressing the Supreme Court’s demand concerning outstanding dues. The court had sternly cautioned Spicejet's CMD, Ajay Singh, about potentially severe consequences if they ignored the directive. During a hearing, one judge remarked, “We are not bothered even if you die,” which Spicejet’s chief, Singh, attended.
Spicejet clarified that the debt to Credit Suisse existed before the current management took over. Since 2015, Credit Suisse and Spicejet have been in a legal tussle. The bank claimed Spicejet owed them around $24 million, prompting the Madras High Court’s 2021 decision to wind up the airline.
Despite a settlement agreement, SpiceJet didn’t clear the dues. In March, Credit Suisse petitioned the Supreme Court, accusing SpiceJet and Singh of contempt for deliberately defying court orders and not settling a $4.5 million debt.
Earlier in the week, SpiceJet also reported that they paid ₹100 crore to former promoter Kalanithi Maran’s KAL Airways, following a Delhi High Court order in a different case.
Price Action: SpiceJet Ltd. shares were trading 2.27% higher at ₹39.25 on Friday at midday.
Get Ring The Bell, Benzinga India’s weekly briefing. Designed specifically for investors like you.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.