Air Arabia begins legal proceedings against Abraaj founder

The airline disclosed last year that it had an overall exposure of $336m to Dubai-based Abraaj



Air Arabia said on Thursday it has begun legal proceedings against Abraaj founder Arif Naqvi in a court in Sharjah, the latest challenge for the founder of the collapsed private equity firm.

The airline disclosed last year that it had an overall exposure of $336m to Dubai-based Abraaj, which filed for provisional liquidation in the Cayman Islands earlier in 2018.

Air Arabia said in a stock exchange filing that it has filed a “misdemeanor” case against Naqvi in Sharjah, one of the seven emirates in the UAE. The filing did not provide more details.

Read: UAE’s Air Arabia has $336m exposure to Abraaj

Abraaj founder Arif Naqvi resigns from Air Arabia’s board

Naqvi, who is outside the UAE, was not immediately available to comment. His spokespeople did not immediately respond to inquiries.

Naqvi is the single biggest shareholder of Abraaj Holdings, which owned the firm’s investment management business now overseen by provisional liquidators.

Last year, he also faced a criminal case from a local businessman against a bounced cheque, but the case was settled between the two parties. Abraaj is also facing a regulatory probe in Dubai.

Read: Criminal case against Abraaj founder dismissed by UAE court