Barbados airport acts to recover millions owed by REDjet

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Barbados airport acts to recover millions owed by REDjet

Unread post by bimjim » Mon Jun 11, 2012

http://www.caribbean360.com/index.php/n ... z1xUZPc0rA

Barbados airport acts to recover millions owed by REDjet
Monday, June 11, 2012

BRIDGETOWN, Barbados

Just days after filing for bankruptcy and legal protection from its creditors, REDJet has run into a legal tangle with one of its major creditors, the Grantley Adams International Airport (GAIA).

The budget airline, which is legally incorporated as Airone Ventures Ltd, announced last Friday (June 8) that it was suspending its operations in Barbados and had filed with the Supervisor of Insolvency in order to prevent all creditors from filing any legal proceedings against the airline for debts owed up to June 5.

However, reports are that GAIA was granted a court injunction on Saturday to block the airline from flying its one remaining aircraft out of Barbados’s airspace after the other of the two was reportedly flown out to Miami that same afternoon.

According to reports carried in the Barbados TODAY, the airport took the step to ensure that these major assets of the airline remained grounded in Barbados while it tried to reclaim over BDS $1.54 million owed by REDjet. That figure was the debt reportedly owed up to March 31 and it is understood that this would have substantially increased have throughout April and May as the carried would have had to pay parking fees for its two aircraft that had remained grounded since March 22. Another major component of the debt that REDjet is said to have for GAIA is the money collected for Passenger Service Charge levied in its tickets, which the airline was obligated by law to remit to the airport.

The matter is to be heard in the High Court on Tuesday to determine if the temporary injunction will remain in place. However, according to reports in the DAILY NATION, attorney-at-law Anthony Audain who is representing REDjet has said that the order gained by GAIA late Saturday was “invalid” and in fact was hampering the airline’s ability to raise the funds it needed to repay the GAIA and its other creditors. He explained that REDjet was taking the plans to the United States where their frames could besold to raise the necessary capital to start repaying debts and that his to be done by today (June 10) before REDjet’s pilots were invalidated from flying.

According to the statement issued by REDjet on June 8, “at the appropriate time” creditors of amounts worth BDS $250 and more, including passengers who have purchased tickets with the airline but who have yet to apply for a refund, will be invited to prove their debts as required by the Bankruptcy & Insolvency Act. The airline also promised to call a meeting of creditors for the purpose of considering and approving the company’s proposal.

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