SpiceJet settles Credit Suisse dispute ‘in-principle’

“With regard to the dispute pending between Credit Suisse and SpiceJet Limited, we would like to inform that the parties have now reached an in-principle commercial settlement of the dispute and the process of documentation is underway. The settlement with Credit Suisse follows SpiceJet’s successful settlements with De Havilland Aircraft of Canada Limited (DHC), Boeing, aircraft lessors CDB Aviation and Avolon,” a SpiceJet spokesperson said.

The person added, “SpiceJet had already deposited $5million on the direction of the Hon’ble Madras High Court in the Credit Suisse case and there is no adverse financial liability on the Company. The settlement involves payment of settlement amount over a mutually agreed period of time.”

An e-mail query sent to Credit Suisse did not elicit a response at the time of publication.

In the context of the airline’s dispute with Credit Suisse and a potential liquidation, Tamil Nadu-based City Union Bank marked the account of SpiceJet as special mention account-1 (SMA-1), while deciding to withdraw the Rs 100 crore bank overdraft facility extended to the airline. Lenders declare an account SMA-1 when interest or principals on loans are overdue for between 31-60 days.