UAE-based firm set to partner Arik Air, offset debts to AMCON

Indications reaching the aviation sector yesterday showed that shareholders of Arik Air may have started discussing with a major Dubai based investor to partner with the Nigerian airline, with a view to offsetting the debts owe Asset Management Corporation of Nigeria (AMCON) and other creditors.

Already, Arik Air and the company started negotiation last week in London and have reached some commitments while a team has been selected by each company to continue with the negotiations, which continues this month.

The plank of discussion according to information gathered, centered on the shareholding and the depth of the debts, which creditors must back with evidence, and also operational conditions.

The airline shareholders have held series of meetings with other investors and have reached firm commitment with the Middle East-based conglomerate, which has its headquarters in Dubai with interest to do business in Africa.

The UAE based company which had voted funds to invest in airline business, power and agriculture, was attracted to Arik Air, which would serve as platform to invest in air transport in the continent.

Confirming the negotiation on phone, the Chairman of Arik Air, Sir Joseph Arumemi-Ikhide said the investor has started negotiation with the shareholders of the company and so far both parties had had fruitful discussions as negotiation continues.

The UAE-based company is said to be willing to build maintain, repair and overhaul (MRO) facility in Nigeria if government gives it the needed support because it has voted funds to invest in Africa.