Satellite group wins legal fight to seize Air India revenues
Shareholders in a satellite company pursuing the Indian government for $1.3b have won a legal victory allowing them to claim revenues from national carrier Air India, in an escalation of a long-running battle fought in courtrooms across the world. Devas Multimedia, which has been embroiled in a fight with the government since a contract it had to develop broadband wireless in the country was cancelled a decade ago, has been targeting Indian state assets for potential seizure. The company was awarded about $1.3b in international arbitration rulings, but India has refused to pay, alleging that the original competition for the broadband contract was mired in fraud. Devas shareholders, who include US investment groups Columbia Capital and Telecom Ventures as well as Deutsche Telekom, hired Jay Newman, who led hedge fund Elliott Management’s 15-year battle to force the Argentine government to pay out $2.4b on its defaulted debt, to lead its legal effort. In a Montreal court ruling on Saturday, a judge ruled that Devas shareholders were entitled to half of the money that the Canada-based IATA holds on behalf of Air India. The Iata operates a settlement system for travel agents, meaning that its offices worldwide can handle much of an airline’s global revenues. Devas shareholders argue that they can claim the assets of Air India, which is owned by the government but is in the process of being sold to Indian conglomerate, the Tata Group. Air India argued at last month’s hearing that funds going through the Iata represented about 65-70% of its revenues, and that the “continued operation of the airline is therefore put in jeopardy”. The Iata, meanwhile, told the hearing that the seizures had had a “chilling effect” on its other clients. The Iata confirmed that “as part of a commercial dispute between various parties in India, Iata had been served a third-party garnishment order on funds that Iata may be holding for and on behalf of specific Indian entities.” It declined to comment further. Story has more.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2022-01-13/star/satellite-group-wins-legal-fight-to-seize-air-india-revenues
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Satellite group wins legal fight to seize Air India revenues
Shareholders in a satellite company pursuing the Indian government for $1.3b have won a legal victory allowing them to claim revenues from national carrier Air India, in an escalation of a long-running battle fought in courtrooms across the world. Devas Multimedia, which has been embroiled in a fight with the government since a contract it had to develop broadband wireless in the country was cancelled a decade ago, has been targeting Indian state assets for potential seizure. The company was awarded about $1.3b in international arbitration rulings, but India has refused to pay, alleging that the original competition for the broadband contract was mired in fraud. Devas shareholders, who include US investment groups Columbia Capital and Telecom Ventures as well as Deutsche Telekom, hired Jay Newman, who led hedge fund Elliott Management’s 15-year battle to force the Argentine government to pay out $2.4b on its defaulted debt, to lead its legal effort. In a Montreal court ruling on Saturday, a judge ruled that Devas shareholders were entitled to half of the money that the Canada-based IATA holds on behalf of Air India. The Iata operates a settlement system for travel agents, meaning that its offices worldwide can handle much of an airline’s global revenues. Devas shareholders argue that they can claim the assets of Air India, which is owned by the government but is in the process of being sold to Indian conglomerate, the Tata Group. Air India argued at last month’s hearing that funds going through the Iata represented about 65-70% of its revenues, and that the “continued operation of the airline is therefore put in jeopardy”. The Iata, meanwhile, told the hearing that the seizures had had a “chilling effect” on its other clients. The Iata confirmed that “as part of a commercial dispute between various parties in India, Iata had been served a third-party garnishment order on funds that Iata may be holding for and on behalf of specific Indian entities.” It declined to comment further. Story has more.<br/>
