Regent Airways operator HG Aviation ordered into liquidation
Dhaka: The High Court has ordered the liquidation of HG Aviation Ltd, the operator of Regent Airways under Habib Group, as it failed to repay over USD 3.7 million in aircraft lease dues to US-based Wilmington Trust Company, according to media reports.
The court said a company cannot evade an acknowledged and payable debt by citing the possibility of securing investment in the future.
Supreme Court lawyer Asif Bin Anwar was appointed as government liquidator to oversee the process and recover the outstanding amount of USD 3,709,827.38 for the creditor.
He was directed to begin the process within a week and submit a report on HG Aviation's liquidation within two months.
Justice Md Toufiq Inam of the High Court's Company Bench delivered the verdict on August 19, with the full 15-page judgment released on October 17.
Barrister Md Mucktadir Rahman appeared for the American company, while no lawyer represented HG Aviation in the proceedings.
Speaking to local press, Rahman said Wilmington had leased aircraft to Regent Airways on multiple occasions but defaulted on lease payments. Ten other Habib Group companies had acted as guarantors for those leasing arrangements.
The lessor had tried various means to recover the dues before filing a liquidation petition in 2023 against 11 Habib Group companies.
So far, the court has ordered liquidation only for HG Aviation. If the outstanding amount cannot be recovered through this process, however, the court may take action against the group's other 10 companies.
Rahman added that he would seek hearings on the remaining petitions after the court's vacation ends this month.
The other companies facing liquidation petitions are Habib Steels Ltd, Diamond Cement Ltd, Legacy Fashion Ltd, Regent Spinning Mills Ltd, Regent Textile Mills Ltd, Siam Superior Ltd, MTS Re-Rolling Mills Ltd, Anwara Paper Mills Ltd, Regent Power Ltd, and Regent Airways Ltd.
Combined, the 11 companies owe close to BDT 4,000 crore to government agencies, banks, and non-bank financial institutions, according to reports.
According to the verdict, Wilmington, serving as owner trustee, entered into an aircraft leasing agreement with HG Aviation on December 14, 2012, under which a used Boeing 737-700 was leased to the company operating as Regent Airways.
HG Aviation subsequently failed to meet its contractual obligations, including lease payments.
As of February 25, 2020, the outstanding amount stood at USD 3,709,827.38, excluding interest and other contractual dues, the American company said. Legal notices demanding payment followed on January 28, February 3, and February 18 of that year.
After repeated demands, HG Aviation’s lawyers acknowledged the liability on the company’s behalf and consented to a revised repayment schedule. That arrangement also fell through, leading Wilmington to pursue the liquidation petition.
In its judgment, the court noted that HG Aviation never contested the underlying liability — it had admitted the debt and agreed to repay it, yet failed to follow through on that commitment.
