Africa: Law suit by Saudi Founder halts Medview’s planned sale of aircraft to revamp aviation operation

Cash trapped Nigerian carrier, Medview Airline may have to source for funds from other means to get the operations of the airline back on track in the aviation sector, as plans by the carrier to sell off two of its Boeing 737-400 aircraft with registration 5N-MAA in Estonia and registration 5N-MAB in Lagos have been truncated by a law suit.

According to nigerianflightdeck.com, a letter issued on behalf of Sheikh Abdulmohsen Al-Thunnayan, the Saudi Arabian founder and Chairman of Med-view Airline PLC, says he is unaware of such sale and has gone ahead to challenge the move in a court of law.

The letter signed by counsel to Sheikh Abdulmohsen Al-Thunnayan, ALP NIG&Co. indicates the matter is currently the subject of Suit No: FHC/L/CS/34/2020 pending at the Lagos Federal High Court.

It read,” Sheikh Abdulmohsen Al-Thunnayan holds 3, 510,000,000 (three billion five hundred and ten million) shares in Medview Airlines, representing 36% of the total shares in the company.

Sheikh Abdulmohsen Al-Thunnayan is currently in dispute with the company over the company’s failure to remit dividends due to him on his investment in Medview Airline and to render proper account of the company’s affairs.

According to the publication, Sheikh Abdulmohsen Al-Thunnayan wishes to inform the general public that he did not receive notice of the meeting where the decision was purportedly taken and has instructed his legal team to take steps to challenge the move.

“Persons seeking to purchase these aircraft (or any other property belonging to Medview Airline) and the general public, are hereby put on notice that any dealings they may have in that regard may form part of the aforementioned lawsuit.”

On July 23rd, 2020 Medview Airlines announced to its shareholders, the Nigerian Stock Exchange (NSE) as well as other Board members at a meeting that it has concluded plans to sell two of its Boeing aircraft as part of efforts to liquidate some of its indebtedness and inject funds to jump-start its operations post COVID-19.

During said meeting the airline has also accepted the resignation of two of its directors, Mr. Ayodeji Ariyo Gbeleyi and Alhaji Oladode Kachet Oyedele.

The airline had said it will sell its Boeing 737-4D7 with registration 5N-MAA which is in Estonia as well as Boeing 737-4D7 with registration 5N-MAB in Lagos and also sought approval of the return of the leased aircraft engine from lessor, Aeolus Engine Services Ireland to enable it preclude the payment of additional rent; engine number CFM5G3CI SN857871.