INTERNATIONAL – 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.
Air Arabia disclosed earlier last year it had an overall exposure of $336 million to Dubai-based Abraaj, which filed for provisional liquidation in the Cayman Islands.
Air Arabia said in a stock exchange filing that it has filed a “misdemeanour” case against Naqvi in Sharjah, one of the seven emirates in the United Arab Emirates (UAE). The filing did not provide more details.
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.
Naqvi earlier this year had faced a criminal case from a local businessman against a bounced check, but the case was settled between the two parties. Abraaj is also facing a regulatory probe in Dubai.Reuters