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REDjet sends home workers, files for debt protection

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bimjim
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REDjet sends home workers, files for debt protection

Unread post by bimjim » Sun Jun 10, 2012

http://www.trinidadexpress.com/business ... 31295.html

REDjet sends home workers, files for debt protection
Jun 9, 2012

Regional low-fares airline REDjet has suspended operations, sent home employees and filed for insolvency.

In a statement sent to the Express yesterday, the Barbados-based airline said it had filed with the Supervisor of Insolvency in that country a "notice of intention to make a proposal" to the company's creditors under the Bankruptcy and Insolvency Act.

All proceedings against the company will be stayed with regard to debts REDjet owes as of June 5, the company said. The stay will be in place for 30 days initially.

The trustee will invite creditors owed BDS$250 and more, including passengers who have purchased tickets with the airline but who have yet to apply for a refund, to prove their debts as required by the Act and also call a meeting of creditors for the purpose of considering and approving the company's proposal, REDjet said.

Media house Starcom Network reported Thursday that the airline informed 94 staff members by letter that it could no longer employ them.

REDjet suspended flights on March 16.

Since then, it was in negotiations with the Barbados and Guyana governments for financial support to get back in the air.

Since suspending operations, the airline has fielded several calls from people who had booked flights across its network seeking reimbursement of their funds.

"REDjet profoundly regrets this decision and its impact on its suppliers, staff and passengers. REDjet believed that it had secured the full aero-political support of the Barbados government and authorities; had it gained access to all markets as a designated national carrier this turn of events could have been avoided. However, regrettably this has not been the experience of the airline over the past two years," the company said.

It added: "With no consensus at a political or technical level to deliver on these commitments which are critical to the development of any airline there can be no future for REDjet in Barbados. Therefore, despite the best efforts of the airline and its staff, REDjet has been forced to make the regrettable decision to suspend all operations," the company said.

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