Air Arabia (G9, Sharjah) has confirmed it is exposed to private equity firm Abraaj to the tune of USD336 million. Abraaj recently filed for provisional liquidation in the Cayman Islands.
The carrier said in a recent Abu Dhabi bourse disclosure that its Abraaj dealings do not have any significant impact on its present or future operations nor does it threaten Air Arabia's liquidity.
"The impact of this issue is limited to the investment portfolio of Air Arabia Group," it said. "We emphasize that there is no significant impact on Air Arabia's daily or future business or on its liquidity status and that the business is operating as usual."
The Sharjah-based LCC has already appointed a legal representative responsible for dealing with Abraaj's liquidation. It has added that it has also hired a team of experts working together with creditors and stakeholders to protect Air Arabia's investment and business interest.
The Dubai-based private equity firm asked the court in the Cayman Islands to appoint provisional liquidators on June 14, 2018, a request that was subsequently granted on June 19.
Abraaj managed a portfolio of equity investments spread across the world and sectors, focusing on Latin America, Sub-Saharan Africa, Middle East and North Africa, Turkey and Central Asia, and Asia. It has invested in diverse companies, ranging from ride-hailing apps and logistics operators to fast-food chains and healthcare companies.
