Kuwait National faces lawsuits from banks

Chairman says airlines company also owes Kuwait-based Burgan Bank about KD16m ($58m)
Kuwait National faces lawsuits from banks
Kuwait National Airlines is the holding company that owns Wataniya Airways (Getty Image - for illustrative purposes only)
By Bloomberg
Thu 07 Jul 2011 03:33 PM

Kuwait
National Airlines Co faces lawsuits from banks and owes Burgan Bank about KD16m
($58m), Kuwait National’s chairman Abdul Salam Al Bahar said.

“The
banks have filed lawsuits and they’re demanding legal measures against the
company,” Al Bahar told reporters on Thursday. He didn’t name the banks.

Kuwait
National also owes Kuwait International Bank KD5m, Al Bahar said at the
company’s headquarters at Kuwait International Airport. Al Bahar spoke after
the postponement of an extraordinary shareholders meeting.

Kuwait
National said last month it failed to reach a settlement with Aviation Lease
& Finance Co., known as Alafco, on the payment of $70m for an aircraft
leasing deal.

Shareholders
in Kuwait National Airlines, the holding company that owns Wataniya Airways, in
May postponed a vote on raising the company’s capital to KD65m, pending
agreement by the company on Alafco’s demands. Kuwaiti carrier Wataniya Airways
halted operations in March, two years after starting up.

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