Cash-Strapped Low-Cost Airline Faces Payment Dispute with Bank
The cash-strapped low-cost airline company had been paying $500,000 a month to the bank. The bank, however, wanted an increase in the monthly payments and sought the payment of $1.5 million a month.
Court Issues Contempt Notice to SpiceJet CEO
In August, the apex court issued a contempt notice to Singh on a plea filed by Credit Suisse accusing the carrier of backtracking from a court-mandated settlement plan toward the payment of dues. The Swiss bank had filed the contempt petition against SpiceJet in April.
Dispute Arises from Failure to Pay Dues to Swiss Aircraft Maintenance Company
The dispute arose after the two parties, in May last year, entered into an agreement to resolve a payment dispute concerning the airline’s failure to pay dues to the tune of $20 million to a Swiss aircraft maintenance company, SR Technics.
- The cash-strapped low-cost airline had been paying $500,000 a month to the bank.
- The bank wanted an increase in the monthly payments and sought $1.5 million a month.
- In August, the apex court issued a contempt notice to SpiceJet CEO Singh.
- Credit Suisse filed a contempt petition against SpiceJet in April.
- The dispute arose from the airline’s failure to pay $20 million in dues to SR Technics.
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