Jetlink Cuts Sh554 Million Debt – Settlement Deal With Suppliers

March 25, 2014

jetlinkpxJetlink has finally reached a debt-settlement deal with a supplier company that had filed a court petition for it’s winding up, raising a possibility that the troubled airline could resume operations in coming months.
On Friday, lawyers of both firms told the High Court that Jetlink had reached an agreement with Finejet to settle it’s debt by the end of April.
“After some negotiations I have received a letter from Jetlink and they have proposed to pay 35 per cent of the debt by March 31 and 65 per cent by April 30,” Finejet lawyer Fred Athwok told Justice Jonathan Havelock.
The agreement also sees Finejet withdraw their court petition filed in March 19, 2013 alleging that Jetlink owed it Sh.14 million in unpaid fuel bills. The suit was later joined by other creditors.
Jetlink owes Sh554 million to its creditors which include Aerotech Limited, Kenolkobil, Avmax spares East Africa and Fine Jet. The firm also owes Equity bank Shs.703 million.
The airline suspended operations in November 2012 due to cash flow difficulties.  However, the firm’s lawyer said the firm was in talks with other creditors looking to settle the debts by May 7.
Additional reporting by Business Daily.

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