Dissolving the airline
The debt was never held with the airline, instead the Government, if Iraqi becomes private Kuwait can do nothing to the airline only the Government.
That might work in Iraq, but in the UK it is likely to be held that the new owner inherited the theft and hence the responsibility to pay back. The court will recognise that it is the same airline and so dissolving it is a waste of time. If they want to try that trick they'd save time just selling it and crossing their fingers somebody will be sill (or brave) enough to try it.