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Oceanic Bank Plc has frozen Aero Contractors’ account with it over an estimated debt of $200m (about N30bn), an authoritative source at the airline told our correspondent on Monday.

According to the source, a six-month old controversy over the status of the alleged debt led to the freezing of the airline’s account by the bank on Friday.

However, a spokesman for Oceanic, Ms. Nonye Ugwujide, said in a telephone conversation with our correspondent on Friday that she had not been briefed and, therefore, could not comment on the development.

But, Aero, which confirmed the development in a statement on Monday, said it might soon stop operations because of the unilateral action by Oceanic on Friday.

The airline said the decision by Oceanic had stopped it from paying its suppliers.

The airline said it had approached the Minister of Aviation, Mrs. Fidelia Njeze; National Security Adviser, Lt. Gen. (rtd) Aliyu Muhammed; and the Director-General, Nigerian Civil Aviation Authority, Dr. Harold Demuren, to intervene.

The statement by Aero’s Managing Director, Mr. Shaf Syed, which was obtained through email, read in part, “Aero has been locked in discussions with its bankers for some months now and it has now reached a point where it is difficult for Aero to operate on these terms.

“The dilemma centres on the allocation of historical debt. The management teams at Oceanic Bank and Aero have been in constant dialogue about this matter for the previous six months; however, they have been unable to agree on a resolution that will allow Aero to continue trading as a going concern. ..

“Regrettably, Oceanic took unilateral decisions on the morning of Friday April 23, 2010, which have effectively prevented Aero from paying her suppliers and lessors (including the Canadian Helicopter Company).

“Aero has approached the Minister of Aviation, Mrs. Fidelia Njeze; the National Security Adviser, Lt. Gen. (rtd) Aliyu Mohammed; and the Director-General of NCAA, Dr. Harold Demuren, in the belief that they will intervene as an arbitrating party between Aero and Oceanic.

“Aero, for its part, needs to complete the full cycle of turn-around that was started last year. The company has new management with a new vision, and is in the process of bearing the fruits of financial success.”

Syed added, “Despite the difficult situation that Aero finds itself in today, I am sure the strategic importance of Aero Contractors to the national economy will be appreciated and good sense will prevail all around.

“We have every confidence that Aero will be able to set itself on a good platform and we look forward to a bright future, serving a third of the Nigerian oil and gas industry and 1.5 million passengers each year.”