SpiceJet-Credit Suisse Case: Supreme Court issues contempt notice to SpiceJet CMD Ajay Singh

SpiceJet-Credit Suisse Case: In the ongoing SpiceJet vs Credit Suisse case, the Apex Court on Monday summoned SpiceJet chairman and managing director Ajay Singh for a personal appearance. 

The Supreme Court issued a contempt of court notice to Singh after SpiceJet failed to repay Credit Suisse a loan of $24 million.

The court has given Singh four weeks to reply to the contempt notice.

After the Supreme Court's announcement of notice, SpeciJet issued a statement that it intended to repay $4.4 million and the remaining balance to the Swiss company. 

"A settlement agreement had been reached between SpiceJet and Credit Suisse last year for an amount of $24 million. The debt, it should be noted, is an old one and predates the current Promoter taking over the company."

The notice further reads, "The payment of the settlement amount was subject to RBI approval. SpiceJet could not start the payment as per applicable schedule under the consent terms for a few months till RBI approval came. Till date, SpiceJet has paid a total of $7.1 million to Credit Suisse. The shortfall of $4.4 million pertains to the period when RBI approval was still awaited. The Company intends to pay this ($4.4 million) and the remaining balance amount as per the applicable schedule."