In a crucial development for budget airline SpiceJet Ltd, the Supreme Court has granted the company a six-month extension to settle its $3 million outstanding debt to Credit Suisse (SIX:CSGN). The court's ruling on Friday, mandates monthly payments of $1 million over the next half-year.
This financial obligation is part of an ongoing legal dispute between SpiceJet and Credit Suisse that began in 2015 over unpaid dues that the Swiss bank claims amount to roughly $24 million. The conflict reached its peak in 2021 when the Madras High Court ordered the liquidation of the airline.
The Supreme Court had earlier warned SpiceJet of severe consequences if it failed to meet its financial obligations to Credit Suisse. This latest ruling gives the company and its stakeholders more time to fulfill their commitment to pay off their debts fully and on schedule.
Following the court's decision on Friday, SpiceJet's share price on the BSE (Bombay Stock Exchange) closed down by 1.5% at Rs 36.48.
The company's representatives have expressed gratitude for the court's decision and reiterated their commitment to maintaining the highest standards of compliance. They also stated their intent to continue positive engagement with all stakeholders.
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