× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS
×

Fly 540 sued over Sh 55m debt

NEWS
By - | July 25th 2012

By Wahome Thuku

An aviation company has filed a petition at the High Court to have an airline company Five-Forty Aviation wound up over a Sh55 million debt.

Finejet Ltd, a company involved in provision of aviation services filed the petition at the High Court in Nairobi, claiming the airline has failed to pay the debt.

The suit is an additional headache to the airline that is already facing other economic hardships. Five Forty Aviation is a Nairobi-based low cost airline which has been operating domestic and international passenger and freight services in Kenya since November 2006.

Through lawyer Fred Athuok, Finejet told the court that 540 Aviation owed them $656,304 (Sh 55 million) as of June 30, 2011 for supply of jet fuel and as interest on the debt.

The company claims it had been supplying fuel to 540 Aviation since December 2008. The sale dispute first went to court in August last year and on February 14, 2012 a ruling was made compelling the airline to pay up.

Finejet managing director John Kimani told said the airline had subsequently made promises to settle the amount in $20,000 (Sh1.6 million) per week but has failed to make the payments.

On June 26, 2012 the petitioner served 540 Aviation directors with a demand to pay up the $656,304 within 21 days failing which they would institute winding up proceedings.

“The 21 days have lapsed but the company has neglected to pay or satisfy the said sum or any part thereof,” the company said in the petition.

“In the circumstances it’s just and equitable that the company should be wound up.”

 

Share this story
Ofcom reveals 4G mobile auction plans
Telecoms regulator Ofcom has unveiled plans for the auction of fourth generation (4G) bandwidth for mobile phone services.
Property developers ride on holiday homes wave
Short-term rents such as Airbnb have become popular with buyers who don’t reside in the houses throughout the year.
.
RECOMMENDED NEWS
Feedback