Jimoh Ibrahim Sued Over Dubious Aircraft Deals In US, Creditors Demand Over $7.68 Million
Jimoh Ibrahim
By SaharaReporters, New York
United States-based aircraft leasing company and its affiliates, Aersale Inc., Aersale 27910 LLC and Aersale 27469 LLC are responsible for the joint lawsuit.
Legal documents seen by SaharaReporters suggest that Ibrahim, who is the sole or majority owner of Air Nigeria, entered into an agreement with the Aersale Group as the Guarantor to lease two Boeing 737-300 airplanes for his airline.
The plaintiffs allege that in order to induce lessors into the agreement, Mr. Ibrahim issued a guarantee to execute prompt payment and also to ensure the swift conduct of Air Nigeria's obligations under the lease agreements. They charge, however, that Ibrahim’s Air Nigeria breached the lease agreements by failing to, among other things, make the basic and additional payments to the Aersale Group and also failing to return the aircraft in the condition required under the Lease Agreements.
According to the plaintiffs, a clause in the Lease Agreement required Air Nigeria to make monthly payments of $125,000 for the first thirty-six (36) months of the lease term and $120,000 for each subsequent month.
The Basic Rent Payments were supposed to be paid on the first (1st) day of each month throughout the lease term while Supplemental Equipment Rent payments were to be paid on or before the tenth (10th) day of each consecutive month during the term. The agreement stipulates that default would occur when Air Nigeria failed to make basic or supplemental equipment rent payments within three (3) days of the due date; when Air Nigeria becomes unable or admits its inability to pay by the due date; or when Air Nigeria fails to comply with any of the stipulated clauses in the agreement.
Once an Event of Default is established, the agreement gives Aersale the right to declare the Lease Agreement null and void and to cancel it, proceed to court to recover lost revenue, demand that Air Nigeria returns the aircraft in the manner and condition required by the specified redelivery conditions, and lease the repossessed Aircraft to any third party; among other things without recourse to Air Nigeria.
Under the terms of the agreement, upon a declaration of default, Air Nigeria is also obliged to pay all arrears of rent as well as the other amounts pertaining to Supplemental Equipment Rent. In addition, Ibrahim, on behalf of Air Nigeria is also liable as the Guarantor to pay for costs incurred by Aersale in the process of repossessing and refurbishing the aircrafts, recovering rent or other amounts due under the Leases etc.
In spite of the guaranty however, from December 2011, Air Nigeria has been late in its payment of a series of Basic Rent and Supplemental Equipment Rent. As a result, Aersale cancelled the Lease Agreements on March 27, 2012. At the time of the termination, Air Nigeria was in arrears of $1,271,447.31, a figure that is likely to increase with each passing day.
Upon receipt of the Termination Notice, Air Nigeria pleaded with Aersale to suspend the termination and resolve the issues out of court. In response, on March 30, 2012, Aersale agreed to temporarily suspend termination of the Lease Agreements provided that Air Nigeria remitted full payment of all outstanding balances under both Lease Agreements together with its Basic Rent payment for April 2012.
On April 3, 2012, Air Nigeria paid $1,000,000 of its outstanding obligations under the Lease Agreements, promising to make good the remaining balance by the end of April, 2012. However they failed to honor that promise.
When approached on the subject, Air Nigeria's Chief Executive Officer, Kinfe Kahssaye declared "Unfortunately, we were not able to do it due to few aircraft in operation." Despite persistent demands by Aersale since then, Ibrahim and his Air Nigeria have failed to discharge the outstanding obligations under the Lease Agreements.
On May 25, 2012 Aersale sent a letter to Air Nigeria, copied to Ibrahim, reminding them of the breach of contract and demanding that Air Nigeria immediately cease operating the aircraft and redeliver them in accordance with the terms of the lease agreements. Then on May 29, 2012, another letter was sent notifying them of the rental arrears in the amount of $1,185,572.62 and demanding prompt payment. Several other letters were sent after that but up till today, Air Nigeria and Ibrahim the Guarantor have failed to comply.
Aersale has thus filed a lawsuit against Ibrahim, the Guarantor, in a New York court claiming an amount not less than $7,685,837.55 plus interest, costs, and attorneys' fees.
It will be recalled that Jimoh Ibrahim has been the subject of a number of lawsuits and investigations over issues including falsely issuing a guarantee for his own company, diverting funds secured with one of his companies illegally into another and dishonestly acquiring shares in other companies.
Notably, he is alleged to have fraudulently hijacked 51% shares of the popular Newswatch magazine only to run it down. The Economic and Financial Crimes Commission (EFCC) of Nigeria has also questioned him over the establishment of Energy Bank in Ghana and Sao Tome and a shady purchase of a private jet in 2009 which he allegedly laundered monies from a pension fund to acquire.
Mr. Ibrahim is also alleged to have channeled over N35 million of aviation funds – a loan granted to Air Nigeria as part of the government’s efforts to rescue the ailing domestic aviation industry— into the account of NICON Investment Limited, a company owned 100% by he and his wife.
The enigmatic Lagos businessman has also been sued by the Federal Inland Revenue Service (FIRS) of Nigeria for 5 years of tax evasion and forgery of Tax Clearance Certificates against Air Nigeria. Aggrieved former staff of Air Nigeria who he fired en masse has also sued him.
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