No Air Namibia creditor to be favoured
Bruni and McLaren, who have been appointed as the airline’s liquidators, have a daunting task on their hands.
10 March 2021 | Transport
Not one single creditor will enjoy an advantage over the other, with Air Namibia’s liquidation now finalised, public enterprise minister Leon Jooste has said.
This follows the appointment of Bruni and McLaren as the airline’s liquidators on 7 March, a notice from the Master of the High Court indicated.
Belgian firm Challenge Air had threatened to attach the airline’s assets after a last-minute deal had been struck that the airline would commit to a series of payments over the unpaid lease and maintenance of a Boeing 767 it had taken delivery of in 1998.
Government, through the airline’s legal department and ministry of public enterprises, also filed for its liquidation citing insolvency while the Namibia Airports Company had applied for the airline’s liquidation through the High Court last month.
Government had also cited competing priorities in its decision to liquidate the airline, saying bailing out Air Namibia was not being considered. N$11 billion has been poured into the airline to date in an effort to save it.
Jooste, when asked how the various developments would play out, said no creditor enjoyed an advantage.
“Air Namibia has provisionally been wound up by the High Court and voluntary by creditors by way of special resolution. These two processes are running concurrently. No creditor will enjoy any advantage over another,” Jooste said of the competing claims against the airline.
NAC is owed N$700 million by the airline. Another big creditor, the Receiver of Revenue, is owed N$789 million. Other creditors include engine manufacturers Aerospace Rolls Royce which is owed N$149 million, German law firm Herfurth which is owed N$145 million, aircraft maintenance service provider Lufthansa Technik which is owed N$90 million, the Namibia Civil Aviation Authority which is owed N$76 million, air traffic control service provider Asecna which is owed N$73 million, fuel provider Engen Namibia which is owed N$22.9 million.
The company will also pay out N$105 million to its 629 employees.
Government for its part must repay guarantees of N$2.5 billion for the lease of two Airbus A330 aircraft.