Contractor sues HK Airlines for $296m billBusiness | Staff reporter 6 May 2021
Local contractor Hip Hing, the construction arm of NWS (0659), filed a lawsuit against Hong Kong Airlines demanding the latter pay over HK$296 million construction costs and overdue interest for the HKA Training Academy.
The two parties signed a supplementary agreement on November 29, 2018, and Hong Kong Airlines agreed to make the payment on schedule, according to the petition.
Hong Kong Airlines allegedly failed to pay Hip Hing around HK$215 million as of April 30. Along with the overdue interest of over HK$80 million, the total arrears is around HK$296 million. In addition to recovering the HK$296 million, Hip Hing also demanded the airline pay the involved interest prior to May 1 before the full repayment. The interest is calculated at a principal of HK$215 million and an annual interest rate of 15 percent.
Hip Hing won the contract for Hong Kong Airlines' training center in 2017. The center was completed in 2019, according to Hip Hing's official website. The 11-story center, which houses 24 training classrooms and 12 aircraft simulators, is located at Kwo Lo Wan Road in Chek Lap Kok.
Meanwhile, Industrial Bank last week also filed a lawsuit against HKA's subsidiary to take back the HKA Training Academy, as the latter has allegedly not yet repaid the mortgage.