SpiceJet repays $24 mn in dues to Credit Suisse
Reuters
Synopsis
SpiceJet has cleared its $24 million settlement with Credit Suisse, closing a liability predating its current promoter. The May 2022 agreement, originally linked to a $41.77 million claim, was settled through structured payments. The airline said the move strengthens its balance sheet and financial stability. CBO Debojo Maharshi said it demonstrates SpiceJet’s resolve to move past legacy issues.
By ET Online
Last Updated:
SpiceJet has successfully completed the full payment of $24 million to Credit Suisse, thereby fulfilling in entirety the terms of the settlement agreement signed between the two parties in May 2022, the low-cost airline said on Monday.
“The completion of this payment is another important step in our continued efforts to put legacy issues firmly behind us. This settlement not only brings closure to an old liability but also demonstrates our resolve and ability to meet commitments despite a challenging operating environment. SpiceJet today is financially stronger, more resilient, and fully focused on growth and profitability," said Debojo Maharshi, Chief Business Officer, SpiceJet.
On the date of the execution of settlement agreement in May 2022 the total claim of Credit Suisse/SR Technics was US $41.77 Million, which the parties agreed to settle for $24 Million in a structured payment plan.
The liability arose before the current promoter took over the airline and was linked to legacy commercial arrangements. With the full settlement now completed, SpiceJet has successfully eliminated a long-standing financial overhang.
The shares of SpiceJet were trading at Rs 33.70 a piece on the BSE, down 2.18 per cent as of 2:14 pm on Monday.
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This marks the closure of a long-standing liability that pre-dates the tenure of the airline’s current promoter. The successful completion of this payment underscores SpiceJet’s commitment to honouring its financial obligations and its sustained efforts to strengthen its balance sheet, improve financial stability and build long-term value for all stakeholders, as per the airline. “The completion of this payment is another important step in our continued efforts to put legacy issues firmly behind us. This settlement not only brings closure to an old liability but also demonstrates our resolve and ability to meet commitments despite a challenging operating environment. SpiceJet today is financially stronger, more resilient, and fully focused on growth and profitability," said Debojo Maharshi, Chief Business Officer, SpiceJet.
On the date of the execution of settlement agreement in May 2022 the total claim of Credit Suisse/SR Technics was US $41.77 Million, which the parties agreed to settle for $24 Million in a structured payment plan.
The liability arose before the current promoter took over the airline and was linked to legacy commercial arrangements. With the full settlement now completed, SpiceJet has successfully eliminated a long-standing financial overhang.
The shares of SpiceJet were trading at Rs 33.70 a piece on the BSE, down 2.18 per cent as of 2:14 pm on Monday.
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