Debt load could bring down Jetlink

Airline faces dissolution as creditors gang up to recover over Ksh4 billion

Jetlink Express could be wound up over a Ksh4 billion after a petition to dissolve  the airline was allowed today by Justice Farah Amin. JetLink Ltd was accused of failing to pay FineJet Ltd Ksh16.4 million for supply of jet fuel in 2012. “The court has before it a debt that has been admitted and the petition is allowed with costs,” said Justice Amin in her 26-page judgment.

The judge also allowed a plea that JetLink directors, Captain Elkana Aluvale and Captain Kiran Patel, be enjoined in paying the costs for the winding-up cause. She said FineJet Ltd has satisfied all the legal requirements to apply for the winding up of the airline, which offers services in East Africa.

Seven other creditors joined the petition, filed by lawyer Fred Athuok, after an advertisement was placed in the media. Justice Amin said the creditors who filed notices to appear alongside FineJet included Mexican CRJ Ltd (Ksh2.3 billion) and Equity Bank Ltd (Ksh818 million).

Others are Kenol Kobil Ltd (Ksh19.6 million), Avmax Spares (E.A) Ltd (Ksh58.7 million), Kenya Civil Aviation Authority (Ksh14.5 million), Kenya Aerotech Ltd (Ksh1.8 million) and National Bank of Kenya (Ksh600 million).

Justice Amin said the petitioner had a right to seek a winding-up order as the airline had failed to pay up the debt within 21 days. The airline’s directors have been given 14 days to respond to the request that they be ordered to pay the costs of the winding-up petition.

[crp]