Stories by Ime Akpan Lagos
Arik Air’s shareholders have sought collaboration with a Middle Eastbased fi rm to pay off the debts it owes to Asset Management Corporation of Nigeria (AMCON) and the other creditors. A source told Blueprint newspapers that the airline’s shareholders have held series of meetings with other investors including the Asian conglomerate which considers Africa as a veritable place for investment. Th e source said the company, which name is kept under wraps, had earmarked huge funds for investment in airline business, power and agriculture
He said the Middle East fi rm was attracted to Arik Air because of its interest in aviation in the hope of latching on to other interests. According to the source, negotiations began in London where Arik Air sent a strong representation, and would continue in the next negotiation that billed to feature Deloitte UK, Barclays Africa and a UK-based law fi rm. “Th e plank of discussion is on the shareholding and the depth of the debts, which creditors must back with evidence, and also operational conditions. “Th e company is willing to build maintenance, repair and overhaul (MRO) facility in Nigeria if government gives it the needed support because it (company) has voted funds to invest in Africa. “We have been having discussions with investors and 10 days ago we had discussion with a US-based company, but we are having serious discussion now with this organisation, which is based in the Middle East because they have a package to invest in Africa and take advantage of the growing economy in the region.
“We have reached agreement on what I will call the sub-heads but the details will come out in our next discussion, but so far the discussion has been fruitful. “Th ey are interested in expanding our operations and will give us additional airplanes in addition to the six we ordered from Boeing; so we have to expand our operations throughout Africa and other international destinations with their partnership. “Th ey are eager to invest in Nigeria but, of course, with the support of the Nigerian government. Th ey said government support is crucial because you cannot really succeed in airline business without government’s support and that is necessary for them to invest in Nigeria or they will take their funds to another African country,” said the source. Arik Air’s chairman, Sir Joseph Arumemi-Ikhide, who confi rmed the development, said the investor had started negotiation with the shareholders of the company. It would be recalled that AMCON had stated that Arik Air owed it N263.7 billion, but the airline had argued saying its total debt exposure, including that of international creditors and local debts amounted to only N160 billion, representing a 16.4 per cent of its value which Deloitte UK put at $3.2 billion.
