Regent Airways, one of the eleven companies owned by Habib Group, a Bangladeshi industrial conglomerate, is on the verge of being liquidated over unpaid aircraft lease. The airline ceased commercial operations in 2020, due to the pandemic outbreak. Since then, reports have emerged of the airline planning to restart services, but the plan never took action.
Wilmington Trust Company has initiated legal action against the Habib Group in Bangladesh High Court, reports Bangladesh Business Standard.
Lawyers involved in the case have claimed that Regent Airways Limited, a sister concern of the Habib Group, had rented aircraft from Wilmington Trust Company on various occasions. However, the aviation company failed to make payments for a prolonged period, leading to it becoming a defaulter.
Additionally, 10 other companies belonging to the Habib Group acted as guarantors for Regent Airways at the time of the renting of the aircraft from Wilmington Trust.
The Bangladesh High Court has accepted 11 separate applications filed by Wilmington Trust, seeking the liquidation of the 11 companies of Habib Group. And, as per the court's instructions, on 19 April this year, Wilmington Trust's lawyers published a legal notice in the names of the 11 companies in a national daily.
Sources claim that the 11 companies including Regent Airways owe approximately Tk3,000 crore to banks, non-bank financial institutions, customs bonds, and other organisations.
Regent Airways began services in Bangladesh in 2010 using two B737-700s leased from ILFC. It gradually expanded its fleet and network, including to international destinations.