Insolvent Air Namibia thrown lifeline at eleventh hour
Cash-strapped Air Namibia survived liquidation attempts by defunct Belgian flyer ChallengeAir SA on Friday when the two firms reached a E10m settlement minutes before liquidation proceedings were due to kick off. ChallengeAir had filed for the loss-making flag carrier’s liquidation last year, arguing Air Namibia was insolvent and unable to repay about 253m Namibian dollars ($17m) in debt incurred for the lease of a Boeing 767 back in 1998. Air Namibia had cancelled the lease agreement, after finding that the aircraft was defective. Negotiations between the two firms have been deadlocked since 2019. Air Namibia will pay ChallengeAir E9.9m, beginning with a E5m payment before Feb. 18 and monthly instalments thereafter until January 2022, according to a settlement agreement seen by Reuters.<br/>
https://portal.staralliance.com/imagelibrary/news/hot-topics/2021-02-01/unaligned/insolvent-air-namibia-thrown-lifeline-at-eleventh-hour
https://portal.staralliance.com/imagelibrary/logo.png
Insolvent Air Namibia thrown lifeline at eleventh hour
Cash-strapped Air Namibia survived liquidation attempts by defunct Belgian flyer ChallengeAir SA on Friday when the two firms reached a E10m settlement minutes before liquidation proceedings were due to kick off. ChallengeAir had filed for the loss-making flag carrier’s liquidation last year, arguing Air Namibia was insolvent and unable to repay about 253m Namibian dollars ($17m) in debt incurred for the lease of a Boeing 767 back in 1998. Air Namibia had cancelled the lease agreement, after finding that the aircraft was defective. Negotiations between the two firms have been deadlocked since 2019. Air Namibia will pay ChallengeAir E9.9m, beginning with a E5m payment before Feb. 18 and monthly instalments thereafter until January 2022, according to a settlement agreement seen by Reuters.<br/>
