Thursday 17 January 2019

UAE: Abraaj Founder Arif Naqvi Faces Lawsuit By Air Arabia

Air Arabia PJSC has filed a lawsuit against Abraaj founder Arif Naqvi, becoming the first publicly traded company to initiate legal proceedings against the Pakistani entrepreneur.

The low-cost carrier said it began legal proceedings through the filing of a misdemeanor case in a court in Sharjah, the United Arab Emirates.

Air Arabia Group has investments outstanding with private equity firm Abraaj, it said in a statement.

The Dubai listed airline, which has a market value of about $1.3 billion, said in June that it had an exposure of $336 million to funds managed by Abraaj Group, adding that it won’t have a significant impact on daily operations or its liquidity status.

Abraaj was one of the most high profile private equity companies in the Middle East until its dramatic collapse last year.

The firm owes banks more than $1 billion and is being restructured after it was found to have borrowed money from some of its own funds to meet operating expenses without investors’ consent, people with knowledge of the matter have said.

Air Arabia is an Emirati low-cost airline with its head office in the A1 Building Sharjah Freight Center, Sharjah International Airport, in Sharjah, United Arab Emirates.

The airline operates scheduled services to 151 destinations in the Middle East, North Africa, the Indian subcontinent, Central Asia and Europe to 22 countries from Sharjah, 28 destinations in 9 countries from Casablanca, Fez, Nador and Tangier, 11 destinations in 8 countries from Ras Al Khaimah, and 6 destinations in 4 countries from Alexandria.

Air Arabia's main base is Sharjah International Airport. There is also a hub in Ras Al Khaimah and focus cities in Alexandria and Casablanca. Air Arabia is a member of the Arab Air Carriers Organization.

Tourism Observer

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