SpiceJet Faces Tight Deadline For Repaying Credit Suisse Debt Amid Hopes to Acquire Go First

spicejet faces tight deadline for repaying credit suisse debt amid hopes to acquire go first

Spicejet news: The Supreme Court on Monday directed the budget airline SpiceJet to settle all pending payments by March 15 in the ongoing lawsuit with Credit Suisse. “There is no scope of belated payment. The respondent is not justified in saying so. The very fact that the respondent is in default is apparent from the dateline given,” remarked the Supreme Court. Previously, in September, the Court had permitted SpiceJet to pay off its debts to the Swiss financial company Credit Suisse within six months, resolving their legal conflict, Economic Times reported.

SpiceJet was required to allocate $500,000 monthly for the overdue amount, in addition to its existing monthly payment of $500,000 to Credit Suisse. After paying off $3 million in back payments over half a year, SpiceJet was expected to proceed with the $500,000 monthly installments, as stated by the court. Furthermore, the Supreme Court acknowledged SpiceJet’s bid for the insolvent airline Go First, remarking, “This is how economy works,” and requested Ajay Singh, SpiceJet’s CMD, to appear on March 22, the forthcoming hearing date, the report said.

Ajay Singh has proposed a joint acquisition of Go First, which halted operations more than nine months ago, in partnership with Busy Bee Airways. This event unfolds as SpiceJet faces financial hurdles, pursuing capital and optimizing expenses, including laying off over 1,000 workers.

“SpiceJet’s role as the operating partner for the new airline involves providing essential staff, services and industry expertise.

“This collaboration is anticipated to generate synergies between the two carriers, leading to improved cost management, revenue growth and a strengthened market position within the Indian aviation industry,” the release said.