Carlyle Aviation Partners filed a claim to receive $700 million from over 30 insurers and reinsurers after they failed to pay when Russian airlines seized jets and refused to return.
Acting on official instructions, Russian carriers have taken control of about 500 aircraft worth about $10 billion leased from overseas companies.
They have ignored lessors’ demands to return the aircrafts.
The action includes a claim that the insurers have acted in bad faith on policies covering 23 aircraft following the war in Ukraine.
That claim could allow a jury to award punitive damages to Carlyle beyond the $700 million, the Financial Times reported citing a person familiar with the case.
Carlyle Aviation Partners, part of the Carlyle Group Inc (NASDAQ: CG), is one of many lessors struggling to recover aircraft leased to Russian airlines before Russia attacked Ukraine.
The case was brought by Carlyle Aviation’s U.K. and U.S. arms, which the legal claim described as “the Carlyle plaintiffs.” It alleged that the insurers had committed nine separate breaches of contract.
“In blatant breach of their contractual obligations, and months after the Carlyle plaintiffs first notified defendants of their covered losses, defendants have failed to provide coverage for these losses,” the legal action said.
Price Action: CG shares are up 1.77% at $28.78 during the premarket session on the last check Tuesday.
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