LONDON (Alliance News) - fastjet PLC on Thursday reiterated it is taking legal advice about a letter it was sent by its shareholder easyGroup Holdings Ltd on Tuesday, which easyGroup made public on the same day, and said it intends to provide a formal response in due course.
easyGroup, owned by billionaire investor Stelios Haji-Ioannou and holder of a 13% stake in fastjet, sent a letter to fastjet in which it alleged that the African low-cost airline had breached the brand licence agreement between the pair.
easyGroup requested a response from fastjet answering the points raised in the letter by 12 noon on March 31. If answers are not provided by that time, easyGroup said it will issue a notice to terminate the brand licence and may seek injunctive relief if that termination notice is not complied with.
"The board is currently reviewing the letter with its legal advisers and intends to provide a formal response to easyGroup in due course. The company will confirm to the market once this has occurred," fastjet said in a statement on Thursday.
This comes after easyGroup last Thursday made public another letter it had sent to fastjet in which easyGroup raised concerns that the airline may become insolvent. In that letter, Haji-Ioannou demanded fastjet immediately resume publication of passenger numbers and load factors, as well as detailed month-by-month cash flow forecasts for the next six months.
fastjet said last Friday it was taking legal advice for the publication of that letter as well.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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