Creditor moves to attach Air Namibia’s assets after cash-strapped airline misses payment deadline

0
98
Luqa, Malta - September 29, 2019: Air Namibia Airbus A330-243 (Reg: V5-ANP) arriving in Malta for servicing by Lufthansa Technik
FILE PHOTO: Air Namibia Airbus A330-243 (Reg: V5-ANP) arriving in Malta for servicing by Lufthansa Technik. Getty Images

Air Namibia is set to lose its headquarters after the flag carrier failed to honor a 10-million-euro settlement agreement signed on January 29 with Belgian flyer Challenge Air.

The move by Challenge Air lawyers to attach Air Namibia’s building comes three weeks after the airline signed a last-minute settlement agreement with Challenge Air to avoid liquidation.

Air Namibia agreed to pay Challenge Air 9.9 million euros, beginning with a 5.8 million euros payment before February 18 and 10 monthly installments until Jan. 2022.

According to court documents, lawyer Sisa Namandje instructed the deputy sheriff for the district of Windhoek to attach and take into execution Air Namibia’s head office valued at 45 million Namibian dollars (about 3 million U.S. dollars) to recover the 5.8 million euros that became due Thursday.

Finance Minister Iipumbu Shiimi announced last week that the airline had been placed into voluntary liquidation, calling the state-owned airline “unsustainable.”

According to the government, Air Namibia’s assets were valued at 981 million Namibian dollars as of August 2020, while the airline owes creditors about 3 billion Namibian dollars.

Leave a Reply