Air Namibia assets attached

Liquidated Belgian aircraft-leasing company Challenge Air SA has started attaching Air Namibia's assets in Europe.

Since the beginning of the year, the Belgian company has managed to extract over N$10 million from Air Namibia's European bank account, according to documents seen by Namibian Sun.

This follows a judgment on 12 January 2015 brought by the liquidator in the Challenge Air matter, Belgian attorney Anicet Baum, against Air Namibia and TransNamib, at the time the holding company of the airline.

The Munich Regional Appeal Court ruled on several payments Air Namibia had to make in respect of monies owed to Challenge Air, totalling, at today's exchange rate, in the region of N$360 million, with an added daily payment of US$1 335 in respect of unpaid maintenance.

The term these monies were outstanding is not known. The court however added that the amount in dispute was in the region of 25 million euros, just short of N$400 million.

Air Namibia had 30 days to lodge an appeal but did not do so.

The attachment of Air Namibia's assets stems from this judgment.

Air Namibia signed a lease for a Boeing 767 aircraft from Challenge Air in 1998.

Last year, Air Namibia spokesperson Paul Nakawa told The Namibian that the leased aircraft was “defective”.

“Air Namibia subsequently discovered that the aircraft was defective in material respects, and Challenge Air was unable to rectify the defects. Air Namibia cancelled the agreement on 27 July 1998,” he told the newspaper.

Challenge Air was then placed in liquidation and the liquidators are now seeking the reported damages from Air Namibia.

Just this week Monday, Challenge Air was able to extract N$3.1 million from Air Namibia's European account, in addition to an amount of N$8.3 million that it managed to extract on 4 January 2019.

Air Namibia had been instructed by lawyers representing Challenge Air, Axel Clerens and Xacier Claesen, to negotiate a settlement with its local representative, Wilhelm Shali.

To this end, the airline appointed Shikongo Law Chambers, who wrote to Baum, Clerens and Claesen in December last year.

“Our client (Air Namibia) is currently in the process of considering various options at its disposal as regards the aforementioned arbitration award, with a view to mitigating against liquidation as may be occasioned by your proposed attachment of assets.”

The airline asked for a meeting with Challenge Air in Brussels or Germany during the first week of February 2019 and furthermore, added that it did not own any aircraft operating on its international routes.





On 13 December, Clerens and Claesen responded.

“Having duly informed the respondents of the freezing of bank accounts, the process of execution of the judgment will continue unless the appointed agent in Namibia (Wilhelm Shali) receives a substantial settlement proposal and or, unless a meeting is convened with my said authorised agents, where a substantial settlement proposal from the judgment debtors is tabled,” they said.

Air Namibia was warned that Challenge Air could attach its assets.

“Your assertion that Air Namibia does not have assets in Europe does not absolve Air Namibia of its legal obligations arising from the Munich Regional Court of Appeal judgment,” Clerens and Claesen wrote.

Moreover, Air Namibia was warned that its actions could potentially be catastrophic for the airline.

“The judgment execution process currently under way is likely to affect Air Namibia passengers destined for Europe and cause embarrassment to Namibia,” Clerens and Cleasen wrote.

Challenge Air, through its lawyers, also told Air Namibia that it would seek further legal remedies to get the debt settled.

“I take it that you concede that your client is unable to meet the obligations arising from the appeal judgment. If this assertion is correct, we seek further legal remedies in this regard,” Clerens and Cleasen wrote.

While the airline faces the possibility of having its assets attached, its Frankfurt-bound flights stopped, and money being extracted from its account until the debt is settled, the government does not appear to be approaching the matter with any sense of urgency.

Challenge Air, in correspondence seen by Namibian Sun, had escalated to the matter to transport minister John Mutorwa, finance minister Calle Schlettwein and public enterprises minister Leon Jooste, seeking a conclusion to the matter.

Mutorwa said upon enquiry that a meeting to discuss the Air Namibia issue was scheduled in due course.

“Has the court pronounced itself?” asked Mutorwa when quizzed. “Discussions are going to happen very soon. Ask Air Namibia to give you the facts,” he said.

Jooste for his part said: “A meeting has been scheduled for Monday where this issue will be discussed with the minister of transport, the minister of finance and the attorney-general. I will only be able to share an informed opinion after that discussion.”

Schlettwein did not respond to a phone message asking for comment.

Air Namibia spokesperson Twaku Kayofa too did not respond to a query before the time of going to press. “We are planning to release a statement on the matter,” he said.

Challenge Air local representative Shali was also not available for comment when approached, as he was said to be out of the country.

OGONE TLHAGE