Top management members at Habib Group, the parent company of defunct Regent Airways’ parent HG Aviation, have been ordered by a court in Bangladesh to repay loans to two banks worth BDT3.5 billion (USD29.8 million), the Daily Star reported.
The loans must be paid within two months to One Bank, which is owed BDT2.1 billion (USD17.9 million) while BDT1.4 billion (USD11.9 million) is owed to Dhaka Bank. One Bank filed three cases against HG Aviation, Siams Superior and Legacy Fashion, all members of the Habib Group. Meanwhile, Dhaka Bank filed a case against a fourth group member, Habib Steels. All of the companies are in liquidation.
However, there are assets linked to the loans as the directors received the loans on a personal guarantee, the Business Standard reported and added that seven directors of the group have been either in the United States or in the United Kingdom for a long time. The repayment order lists chairman Yakub Ali, managing director Yashin Ali, and directors Amina Mahbub, Anjuman Ara Begum, Salma Sultana, Tanvir Habib, Salman Habib, and Mashroof Habib as the responsible persons.
Regent Airways failed to relaunch after the pandemic and was liquidated last year over an unpaid aircraft lease. Additionally, the Civil Aviation Authority of Bangladesh (CAAB) said in September 2023 that the airline owed it BDT4 billion (USD36.7 million) in unpaid fees and accrued interest.
