FastJet hit by legal battle over millions
African no frills airline FastJet is embroiled in a legal dispute with an airline firm who claims it owes millions of dollars.
Five Forty Aviation has instructed lawyers to recover $6.8 million for financial support given to Lonrho Aviation, now FastJet.
It says the debt relates primarily to the financial support given to Fly540 Tanzania (the trading name of Five Forty Aviation) as well as branches in Angola, Ghana and elsewhere operated by Lonrho Aviation.
The company claims FastJet agreed to clear debts as part of the sale reports the Sunday Times.
A statement said: "Five Forty Aviation Ltd ("the Company") confirms that it has instructed its lawyers to recover an acknowledged debt of $6.8m from Lonrho Aviation (B.V.I) Ltd, (now operating as FastJet)."
A spokesman for Five Forty Aviation said: "The $6.8m claim is for repayment of monies that were underwritten by Five Forty Aviation in supporting Lonrho Aviation’s businesses in Africa.
"Under the acquisition agreement, Lonrho Aviation (now Fastjet) agreed to pay off this bank debt. To date, they have not done so. This money is not owed to any individual or executive of Five Forty Aviation."
A deal was set up in June 2012 for FastJet to use Lonrho Aviation’s routes and networks, see previous story.
But FastJet say the deal has been fully consummated and nothing is owed.
It said: "Don Smith and his partners have been paid all amounts due to them, a total sum of US$6.75m.
"Mr Smith certified in a document signed by him on 24 July 2012 that, other than specified liabilities as set out in the document, there is no other liability or indebtedness due to him or any entity controlled by him.
"There has never been any agreement that Lonrho Aviation would pay Mr Smith a further sum of US$7m."
The airline said it was planning to launch its first international routes shortly.
Diane
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