June 18, 2007	Monday	Jumadi-us-Sani 02, 1428

KARACHI, June 17: Referring to a news report stating that Saudi Foreign Minister Prince Saud Al-Faisal has filed a lawsuit in a US court against Pakistan International Airlines Investment Limited (PIAIL), a PIA press release has clarified that the suit has been filed by Prince Faisal bin Khalid bin Abdulaziz Al Saud, and not by the Saudi foreign minister.

It said that Prince Faisal bin Khalid had informed the PIAC / PIAIL that he had entered into a sale-purchase agreement with Alpha Capital Cayman Limited for sale of 0.9 per cent shares in PIAIL at a price of US $8,600,000 and that $100,000 has been deposited in the escrow account. Prince Faisal sent a ‘right of first refusal’ (ROFR) notice to PIA.

The PIAC decided not to respond to the notice, but to redeem his 1per cent minority share at a value of $480,000, in accordance with Section 176 of BVI Companies Act 2004. Prince Faisal did not accept the redemption price and filed the suit in the Supreme Court of New York.

Cadbourne & Parke, PIAC / PIAIL’s attorneys in the case, questioned the jurisdiction of the suit and were able to seek its transfer from the State Court of New York to the Federal Court.