SpiceJet Completes Payment of Rs 100 Cr To KAL Airways As Per Court Direction

According to a statement released by the domestic airline on September 12, SpiceJet has finished paying Rs 100 crore to former promoter Kalanithi Maran's KAL Airways. According to the airline, it has already paid Kal Airways Private Limited INR 77.5 crore on September 11 and has finished paying the INR 100 crore payment on September 12 by paying INR 22.5 crore in accordance with the Hon'ble Delhi High Court's instructions.

SpiceJet acknowledged by saying in a statement that "the legal process and is committed to complying with all court directives and obligations in the Credit Suisse matter and will make the payment of $1.5 million as per the court directive. Till date, SpiceJet has already paid a total of $8 million to Credit Suisse as per consent terms."

"SpiceJet remains committed to the highest standards of transparency and legal compliance. This liability is an old one and predates the current Promoter taking over the company," said the company in a stock exchange filing.

The news comes a day after SpiceJet granted its chairman and promoter Ajay Singh assurances that he will pay media mogul Kalanithi Maran Rs 100 crore in accordance with a previous Delhi High Court decision. The case's subsequent hearing is now set for October 3. On August 24, the Delhi High Court ordered Chairman and Managing Director Singh to pay Maran the outstanding sum of Rs 100 crore by September 10.

Ajay Singh, the chairman and CEO of SpiceJet, has received harsh criticism from the Supreme Court, which has threatened to send him to Tihar Jail for disobeying its directive to pay Credit AG. The Supreme Court ordered Singh to pay a Swiss company one installment of $5,000 and a default amounting to $1 million

A legal battle has been going on between Credit Suisse and SpiceJet since 2015. The airline was ordered to be shut down in 2021 by the Madras High Court after Credit Suisse said that the company had over $24 million in outstanding debts.

Commenting on the outlook of SpiceJet shares, AR Ramachandran from Tips2Trades said, "SpiceJet is slightly bearish & also overbought on the Daily charts with strong resistance at 42.45. A daily close below support of 37.85 could lead to a target of 30.8 in the near term."