Medview Airlines Plc has said that the pending suit instituted by its chairman, Sheikh Abdul Mohsen Al-Thunayan has nothing to do with the operations of the carrier including the sale and leasing of aircraft.
Al-Thunayan has a matter currently in the subject of a suit bothering on non payment of his dividend which is pending at the Lagos Division of the Federal High Court.
In a statement late on Thursday, the airline explained that the Board at its meeting held on recently resolved to sell two of the company’s aircraft namely, B737-400 (5N-MAA) and B737-400 5N-MAB) to reduce the company’s credit facility with the First Bank of Nigeria (and to restrategise its operations by acquiring two lower capacity aircraft.
This it said has become necessary due to the outbreak of the Covid-19 pandemic and how it is shaping the airline industry worldwide, stressing that the resolution was made pursuant to the request of the First Bank for the company to liquidate or reduce its indebtedness to the Bank.
It further explained the bank has also promised to continue its unwavering support to acquire the two aircraft even with their approval of the sale of 5N-MAA and MAB
The notice of the meeting according to the management was given to all directors of the company including the Nigerian Stock Exchange Commission in line with the regulations guiding quoted companies.
“Also be informed that by virtue of the existing Deed of Aircraft Mortgage and De- Registration Power of Attorney between Medview Airline Plc and First Bank of Nigeria Limited, the latter is the Sole Mortgagee that could exercise all relevant legal rights over the said aircraft”.
In the exercise of its legal rights therefore, it noted that the Bank considered and approved the sale of the two aircraft with the sale’s proceeds applied towards part liquidation of Medview’s exposure to the Bank.
It reiterated that the rejoinder becomes necessary therefore to inform would be interested purchasers of the First Bank’s lien on the two aircraft.
“The First Bank of Nigerian Limited in exercise of its Lien power as the Sole Mortgagee therefore has the competence and capacity to approve the sale of the 5N-MAA and 5N-MAB aircraft. Interested persons and organizations should therefore submit/conclude their offers for consideration and acceptance accordingly”.
On Wednesday, Al-Thunnayan in an advertorial is seeking to pull his investment out of the airline.
He is in dispute with the company over the company’s ‘failure to remit dividends due to him on his investment in Medview Airlines and to render proper account of the company’s affairs’.
He has however instructed his legal counsel to take appropriate steps to challenge what he described as the ‘ Illegality’ of the management of the airline to sell two airplanes belonging to the carrier to pay off debts of the airline.
Al-Thunnayan is a national of the Kingdom of Saudi Arabia and the founder and chairman of Medview Airline Plc.