Abraaj is ‘version two of Lehman Brothers’: Air Arabia CEO:
After having to pay over Dh1 billion in impairments on the now-bankrupt Abraaj, the head of Air Arabia called the private equity firm “version two of Lehman Brothers,” the financial services firm that filed for the largest bankruptcy in American history in 2008.
Air Arabia, which had $336 million (Dh1.2 billion) invested in Abraaj funds, reported in mid-February Dh609.5 million in losses for the full-year 2018, compared to a profit of Dh630.6 million a year earlier. The losses came as the Sharjah-based company paid Dh1.1 billion in impairment costs on its exposure to Abraaj.
Adel Ali, chief executive officer of Air Arabia, said on Tuesday that the airline reported the full impairments on that exposure in 2018, meaning that it won’t report any further costs related to Abraaj this year.
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