Monday, August 14, 2023

Credit Suisse vs SpiceJet: SC issues contempt notice to Ajay Singh

In the Credit Suisse versus SpiceJet case, the Supreme Court has summoned the low-cost carrier's CMD Ajay Singh for personal appearance.

The apex court decided to issue contempt notice against Ajay Singh for failure to repay Credit Suisse as per consent terms.

SC has asked Singh to respond to the contempt notice in four weeks.

"A settlement agreement had been reached between SpiceJet and Credit Suisse last year for an amount of $24 million. The debt, it should be noted, is an old one and predates the current Promoter taking over the company. The payment of the settlement amount was subject to RBI approval. SpiceJet could not start the payment as per applicable schedule under the consent terms for a few months till RBI approval came. Till date, SpiceJet has paid a total of $7.1 million to Credit Suisse. The shortfall of $4.4 million pertains to the period when RBI approval was still awaited. The Company intends to pay this ($4.4 million) and the remaining balance amount as per the applicable schedule," said a SpiceJet spokesperson.

14/08/2023 Business Today

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