Beleaguered low-cost airline SpiceJet has rushed ahead with a clarification after the Supreme Court docket issued a contempt of courtroom discover and demanded that chairman and managing director Ajay Singh reply inside 4 weeks.
The problem pertains to the $24 million SpiceJet was presupposed to pay Credit score Suisse as per an settlement final 12 months.
SpiceJet, in an announcement issued on Monday night, stated it meant to pay the quantity due and that the delay was owing to the RBI approval for which it was ready. “SpiceJet couldn’t begin the fee as per relevant schedule beneath the consent phrases for a number of months until RBI approval got here,” the assertion stated, including that this was a due pending from earlier than Ajay Singh once more grew to become the promoter of the corporate (Singh, who based the airline, was compelled to promote the airline, solely to purchase it again round 2014).
“Until date, SpiceJet has paid a complete of $7.1 million to Credit score Suisse. The shortfall of $4.4 million pertains to the interval when RBI approval was nonetheless awaited,” the assertion stated, including that it meant to repay the remaining $4.4 million “as per the relevant schedule.”
Credit score Suisse had filed a case final 12 months complaining of lack of funds from the airline and had referred to as for a winding up of the airline. After the Madras Excessive Court docket agreed to Credit score Suisse and ordered winding up of the airline, the Supreme Court docket had stepped in to facilitate an “in precept industrial settlement” whereby SpiceJet will repay, an settlement a furious apex courtroom on Monday famous the Gurgaon-headquartered airline had not adhered to.
The courtroom improvement got here even because the airline introduced its quarterly outcomes on Monday morning, returning a revenue of Rs 205 crore after earlier cycles of large losses.
