Kuwait National Airlines' shareholders postponed a vote on raising capital last week, a move that could have paved the way for a settlement with its creditors.
Kuwait National Airlines, the parent company of Wataniya Airways which halted operations on 16 March, was hoping that the capital increase would "repay immediate liabilities and the remainder will be available for if shareholders decided to resume operations," Chairman Abdul Salam al-Bahar told investors attending the annual general meeting.
Kuwait National Airlines owes banks 22 million dinars ($80.2 million), and is 15 million dinars in debt to other creditors, according to al-Bahar.
Its largest creditor is leasing company ALAFCO, which is pursuing Wataniya Airways for some $70 million in unfulfilled lease payment.
Wataniya Airways' fleet included three 2009-vintage A320s on lease from Alafco, another three aircraft of the type from AerVenture and one aircraft from ILFC. ALAFCO says the aircraft had been leased through 2017 and is "willing to negotiate with Wataniya Airways to agree fair compensation" for the damage caused to the lessor.