Belgians apply for Air Namibia liquidation

OGONE TLHAGE

WINDHOEK



Belgian company Challenge Air SA, through local lawyer Sisa Namandje, has applied to the Namibian High Court for the liquidation of Air Namibia this week.

Namandje is representing Belgian liquidators Anicet Baum, which Challenge Air hired to help realise the winding up of the national airline.

The action is being instituted after Air Namibia failed to honour a settlement agreement for the payment of approximately N$400 million to Challenge Air for leasing a jet from the Belgian company in 1998.

This legacy of debt stems from a dispute about the rent and maintenance of a Boeing 767-33 AER.



In 2008, Challenge Air obtained a judgment from a German court which ordered Air Namibia to pay it US$6.5 million for unpaid rent, maintenance and insurance of the Boeing.



In another judgment in July 2011, Air Namibia was ordered to pay an additional US$13 million in interest on the outstanding debt.



Late last year, the Namibian government provided a guarantee of N$578 million to allow the national airline to borrow money from commercial banks and keep Challenge Air from attaching its fleet of Airbus A330-200 planes used on the Frankfurt route.







Breach of contract



Challenge Air has accused Air Namibia of breaching its contract.



“Air Namibia, after paying part of the instalments, has since regrettably and materially breached the agreement by failing to pay the remaining monthly instalments,” it said.



“It is therefore very clear that Air Namibia is not able to pay its debts as they fall due, a fact which it has readily admitted,” Challenge Air added.



Challenge Air further said it was clear Air Namibia was in deep commercial insolvency.



Air Namibia, the Belgian company said, had also been asking for assistance from government, which was not forthcoming.



“It is therefore further in the interest of the public for the first respondent to be wound up,” Challenge Air said.







Inability to pay



“[Air Namibia] is commercially insolvent in that it is unable to pay its debts as they fall due as contemplated by Section 350(1))c) and (2) of the Companies Act. It is just unequitable that [Air Namibia] be wound up,” Challenge Air said in court papers filed.



Challenge Air added that Air Namibia was unable to settle its debt despite agreeing to a settlement with the company.



The Namibian national carrier has to date only paid €8.2 million of the €18.2 million it owes to Challenge Air.



“[Air Namibia] failed to honour the settlement agreement,” it said.



Challenge Air added that several payments were not paid in full while another payment made by Air Namibia was delayed.



Challenge Air also said Air Namibia had informed a local representative appointed to act as a go-between, Willem Shali, that it was unable to settle its debts owed.



“Crucially, the [Air Namibia] chairperson, post and present acting CEO and the legal officer had since acknowledged to Mr Shali that it was unable to pay its debts as they fall due,” Challenge Air said.