MONDAYBUSINESS Arik shareholders in talks with Dubai firm to reclaim airline

In a move to reclaim Arik Airline from the Assets Management Corporation of Nigeria (AMCON), shareholders of the airline have initiated talks with a major investor to partner the airline and offset its indebtedness to AMCON and other creditors, it was learnt yesterday.

Informed sources said yesterday that the new firm, a Middle-East conglomerate based in Dubai, UAE has indicated interest in the airline as part of its investment in air transport.

Already discussions have started with the Arik Air shareholders in London with the talks focusing on shareholding and the depth of the debts while creditors are expected to back the debts with evidence.

AMCON had on February 8 took over the management of Arik Airline over indebtedness to the tune of over N300bn, according to the corporation.

But the airline had argued that its total debt exposure, including that of international creditors and local debts amounted to N160 billion.

This, according to the shareholders represents 16.4 percent of its total value summed at $3.2billion by Deloitte UK in 2013.

Having had meaningful engagement with the interested investors, it was gathered that the shareholders are putting a strong team for the next round of discussion, including Deloitte UK, Barclays Africa and a UKbased law firm.

Once the talks complete and the parties agree at a workable modality, the firm is expected to offset Arik debts and provide the carrier with operational funds to regain the market.

In addition, the firm is said to have expressed willingness to build maintenance, repair and overhaul (MRO) facility in Nigeria after securing necessary approval from government.

“This investor is interested in expanding our (Arik’s) operations and will give us additional airplanes in addition to the six we ordered from Boeing. We will expand our operations throughout Africa and other international destinations with their partnership”, the source said.

Chairman of Arik Air, Sir Joseph Arumemi-Ikhide confirmed the negotiation in a chat with newsmen, saying investor had started negotiation with the shareholders of the company and so far both parties had engaged in fruitful discussions as negotiation continues.

Spokesman of AMCON, Mr. Jude Nwazor is yet to respond to Daily Trust enquiry as at the of filing this report.