In Nigeria, a local bank seizes the assets of Med-View Airline for unpaid credit
Kano-based Med-View Airline suspended operations in August 2019 due to operational challenges. Since then, the Nigerian private airline, which has an expired AOC, has never taken off again, making it unable to meet its debt obligations.
On Monday, December 5, 2022, the police raided the premises of Med-View Airline, located in Ikeja and Lekki, two Lagos suburbs, throwing everyone out and sealing the properties. The police were enforcing an alleged court order guaranteed by one of the owners of the property.
But for the carrier's lawyer, Pedro Lawal, this "invasion" is a violation of court procedures. According to him, the ex parte order issued by Justice Lawal Akapo on 22 November in case no. ID/6251/GCMW/22 does not order the seizure of his client's properties. Rather, it orders the preservation of the company's assets from sale or other disposition, pending the outcome of a possible application for seizure by First Bank, which has so far not brought any such action.
Lawal added that the ex-parte orders issued by Justice Oluyemi on November 22, in cases No. ID/6241/GCMW/22 and ID/6243/GCMW/22, ordered the airline to repossess the home of its managing director, pending the outcome of the bank's proceedings. Med-View Airline's lawyer said he was surprised that the two parties are currently in discussions.
"We have held meetings with the bank officials, and exchanged correspondence on the amicable resolution of any outstanding debt, and for the parties to resume normal banking relations. So, this morning (Monday), we were surprised when police officers invaded our clients' properties in Ikeja and Lekki, chased everyone away and sealed the properties as if the final judgment had been made in favour of the bank on the alleged debt," he said. "We are taking appropriate steps to get justice and redress for our clients through due process," the man in black promises.
Med-View Airline suspended flights in August 2019, after its last operational aircraft (a Boeing 737-500, 5N-BQM) was grounded. Grounded for technical reasons, it joined the two 737s and 777s retired before it. This came after the operator recorded losses of USD 8.77 million in the first half of the year.
The carrier was a major player in the Hajj and Umrah markets, but the cancellation of the pilgrimage for two consecutive years by the Saudi authorities due to COVID-19 had a negative impact on its business.
In January 2020, Med-View Airlines had narrowly escaped liquidation proceedings initiated by oil supplier AsharamiSynergy, which claimed a N43.5 million ($120,000) debt. In August 2020, Med-View Airlines had decided to sell its two 737-400s to reduce its debt to First Bank. Earlier this year, the Nigerian Economic and Financial Crimes Commission (EFCC) opened an investigation against managing director Muneer Bankole in connection with the alleged misappropriation of funds for Hajj operations.
