Export Development Canada (EDC) has filed a lawsuit in the UK courts against a European private jet charter firm, claiming it is owed more than US$11mn and the delivery of an aircraft.

EDC claims Munich-headquartered ImperialJet Europe has missed rental fees, interest payments and other costs stemming from the 2016 financing of two Bombardier jets.

The suit, filed in early February, also names the firm’s owner Abed El Jaouni as a defendant, as well as AJ Aircraft, a Cayman Islands special purpose vehicle (SPV) set up to facilitate the disputed loan transactions.

EDC says it provided financing to the SPV for the purchase of two planes: a US$6.9mn loan for a Bombardier Challenger 850 aircraft and US$8.4mn for a Challenger 605 jet.

The aircraft were then leased to ImperialJet, which was responsible for making regular rental instalments via the SPV, EDC’s court filing says.

However, by late 2018, ImperialJet was struggling to meet its payment obligations, the filings allege.

EDC argues it is now owed over US$11mn related to the loan agreements. It is also seeking to seize the Challenger 850 aircraft and have it delivered to a London airport.

EDC says it terminated the lease agreement in recent months and the jet is now being used improperly.

“In breach of the 850 Lease, and despite a further notice dated 27 November 2024… [ImperialJet] has failed to comply with the 850 Termination Notice and has instead continued to operate and fly the 850 Aircraft; and… has failed to pay the 850 Termination Amount,” EDC claims.

The sides had struck a settlement agreement in late 2022, under which ImperialJet returned the 605 jet and made a US$2mn payment.

The agency is also bringing action against El Jaouni as he allegedly guaranteed the transactions, the filings show.

EDC is pursuing another company in the UK courts over an aircraft financing contract. In early 2023, the Canadian agency brought court action against Tanzanian airline Precision Air and said it is owed nearly US$26mn. That deal was likewise structured to include an SPV.

ImperialJet’s website says the firm operates a “diverse, modern fleet of private jets” including its “flagship” Challenger 850, which has a capacity of about a dozen people and a range of six hours.

An EDC spokesperson says the export credit agency is actively engaged in court proceedings and cannot comment on an ongoing legal matter. ImperialJet Europe has not replied to multiple emails from GTR.