KAC to receive $500 mln from Iraq Airways in next few months

KUWAIT CITY, July 4: Ministry of Finance and Kuwait Airways Corporation have been coordinating efforts toward receiving $500 million from Iraq Airways. The sum is scheduled to be transferred in the next few months, reports Al-Qabas daily.

A source said payment could be made in a single tranche or two, although final agreement is yet to be made in that regard. He noted the parties opted for full payment of the debt and agreed on ‘out of court’ settlement, and withdrawing cases filed against Iraq Airways based on the destruction of Kuwait Airways fleet during the Iraqi invasion of Kuwait in 1990.

He explained the initial agreement for Iraq Airways to pay $300 million cash and convert the remaining $200 million to capital base for establishing Kuwait-Iraq Airways as a joint venture has been canceled. The proposed venture was aborted along the line, so the parties have agreed to pay the entire debt in cash, the source noted

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