Air Arabia has emphasised that there is no impact on the airline's operations and that business is operating as usual
Air Arabia has an overall exposure of $336 million to fund portfolios and short-term investments managed by troubled private equity firm Abraaj, the company said on Thursday.
In a statement sent to Arabian Business, an Air Arabia spokesperson said that a team of experts “is actively engaged with all stakeholders and creditors involved in the matter to ensure Air Arabia’s investment and business interest is protected.”
On June 18, a court appointed representatives to conduct a court-supervised restricting of Abraaj’s financially distressed funds to ensure that the rights of investors, including Air Arabia, are preserved.
“In addition, we have an appointed legal representative before the court and who is closely involved in all proceedings following the court’s decision,” the spokesperson added.
The impact of the exposure to Abraaj funds, the spokesperson said, “is limited to the investment portfolio of Air Arabia Group”.
“We emphasise that there is no significant impact on Air Arabia’s daily or future business or on its liquidity status and that the business is operating as usual,” the spokesperson noted.
Earlier this week, Air Arabia stocks fell 7.1 percent because of the airline’s ties to Abraaj, while filed for provisional liquidation late last week.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.