Jetlink airline faces closure over Sh4bn debt


A Jetlink aircraft. PHOTO | FILE

Collapsed airline Jetlink Express Ltd may be wound up for failing to pay creditors over Sh4 billion.

A petition to wind up the carrier was allowed Tuesday by Lady Justice Farah Amin.

JetLink Ltd was accused of failing to pay FineJet Ltd Sh16.4 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 costs for the winding up cause.

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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 (Sh2.3 billion), Equity Bank Ltd (Sh818 million), oil marketer Kenol Kobil Ltd (Sh19.6 million), Avmax Spares (E.A)Ltd (Sh58.7 million), the Kenya Civil Aviation Authority (Sh14.5 million), Kenya Aerotech Ltd (Sh1.8 million) and National Bank of Kenya (Sh600 million).

Justice Amin said the petitioner had a right to seek a winding up order as the airline failed to pay up the debt within 21 days.

The airline’s directors have been given 14 days to answer the request that they be ordered to pay costs of the winding up petition.