FastJet faces $7m legal claim over African debts Donald Smith alleges the London-listed carrier has failed to honour a deal to repay $6.78m of debts that he guaranteed with Chase Bank in Kenya. FastJet was formed in June last year via a £55m all-share deal that saw Lonhro's aviation wing, Fly540, reverse into Aim-listed Rubicon. The new company was renamed FastJet - a brand owned by Sir Stelios, with the entrepreneur given a 5pc stake and awarded a €50,000 (£42,645) a month consultancy fee. Mr Smith, who set up Fly540 in 2005, claims that to facilitate the deal he agreed to guarantee debts held by the Kenyan business that was financing other Lonhro Aviation operations in Africa, particularly in Tanzania. He alleges Lonrho Aviation undertook to repay those debts. He is now claiming he is still owed the money and, as a result, the sale of the Kenyan airline has not been completed. On January 9 his lawyers wrote to Lonhro Aviation giving the company 14 days to repay the money or face legal action to recover it. The dispute is the latest to hit FastJet's Kenyan operation, which last year became embroiled in a row with two suppliers over an alleged $1.5m of unpaid bills. A FastJet spokesman hit back, saying: "Don Smith and his partners have been paid all amounts due to them, a total sum of $6.75m. Mr Smith certified in a document signed by him on 24 July 2012 that, other than specified liabilities as set out in the document, there is no other liability or indebtedness due to him or any entity controlled by him. The purchase was and has been fully consummated.