Update: SC Order on Ongoing Tussle Between SpiceJet & Credit Suisse

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Update: SC Order on Ongoing Tussle Between SpiceJet & Credit Suisse

By Malvika Gurung

Investing.com -- The Supreme Court has ordered to stay the winding-up of private airlines SpiceJet for 3 weeks on Friday, as the airline pointed to clear its pending dues.

The low-cost airline had filed an appeal at the Supreme Court against the winding-up order passed by the Madras High Court’s, as the company failed to pay dues of $24 million to the Swiss investment bank Credit Suisse (SIX: CSGN ) AG.

The Supreme Court has extended relief to SpiceJet for three weeks and has ordered it to submit its financials, as the 3-judge CJI bench warned to declare the airline insolvent and wind it up if it refuses to pay the pending dues.

It has adjourned the hearing for three weeks, on requests received by litigating parties, as the airline attempted ways to resolve the issue.

Madras High Court had upheld its decision of the private airline’s liquidation on Jan 11, as Credit Suisse sought to wind up SpiceJet, on its inability to pay outstanding debts to SR Technics for aircraft maintenance, repair and overhaul, a portion of which was to go to the Swiss bank.

As per a Times report, the investment bank submitted that only if the airline can show that the debt isn't enforceable, shall the winding-up stop.

Shares of SpiceJet zoomed over 8% after the Supreme Court’s order on staying the airline’s wind up for three weeks, and the stock is now trading 5.8% higher at Rs 63.95 apiece at 12:27 pm.

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  • Saravana Kumar S T @Saravana Kumar S T
    I don't know why people scramble for such stocks and rise it by 8% on a single day which is on the verge of winding up🤔
    Like 3
  • Chandan Kumar @Chandan Kumar
    Chandan
    Like 0
    • Chandan Kumar @Chandan Kumar
      chandan Northampton secret
      Like 1
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      100
  • KUMKUM RANI @KUMKUM RANI
    😀
    Like 0

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