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[Barbados] REDjet offer for creditors

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bimjim
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[Barbados] REDjet offer for creditors

Unread post by bimjim » Sat Aug 25, 2012

http://www.nationnews.com/articles/view ... creditors/

[Barbados] REDjet offer for creditors
DAWNE PARRIS
SAT, AUGUST 25, 2012

A PROPOSAL OUTLINING how REDjet plans to repay creditors has been finalized but passengers and others owed should not expect to get all their money back.

They can collect at least a quarter of it though.

This was confirmed by Anthony Audain, the attorney-at-law for trustee Grenville W. Phillips, under whose control the airline rests.

Audain confirmed to the SATURDAY SUN yesterday that the proposal was filed on Monday and it will now be left to the creditors to accept what is offered or the low-cost carrier will officially go under.

“The proposal is basically a proposal to creditors on how to deal with their debt. They will not be offered 100 cents in the dollar; it has to be at least 25 cents because less than 25 cents in the dollar the proposal would fail by law,” he said.

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Re: [Barbados] REDjet offer for creditors

Unread post by islandflyer » Sun Aug 26, 2012

I have a few questions:

1 - The offer from Redjet is basically 'instead of the dollar I owe you, here is 25 cents instead'. When I read this, it appears as a take it or leave it proposition. If that true?

2 - In Guyana, Redjet had to post a bond against its operation, in case of issues where the Guyanese travelling public were disadvantaged and needed to recover their money (as I understand it). Did the same apply in Barbados?

3 - If not for the above, why not?

4 - Where did the other 75 cents go?

5 - Did other creditors get their full amounts, like GAIA, Government, and whoever else had influence?

6 - Does Mr. Phillips and Mr. Audain get their full fee for this exercise?

7 - Is that money part of the missing 75 cents?

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Re: [Barbados] REDjet offer for creditors

Unread post by bimjim » Sun Aug 26, 2012

  • 1 - The offer from Redjet is basically 'instead of the dollar I owe you, here is 25 cents instead'. When I read this, it appears as a take it or leave it proposition. If that true?
Seems to me they are saying that the law requires a MINIMUM of 25 cents on the dollar compensation, otherwise the offer is not legal.
  • 2 - In Guyana, Redjet had to post a bond against its operation, in case of issues where the Guyanese travelling public were disadvantaged and needed to recover their money (as I understand it). Did the same apply in Barbados?
No idea, personally. But Guyanese have had this problem so many times the authorities required a bond be in place before REDjet could operate.
  • 3 - If not for the above, why not?
I don't think Bajans have had so many of these kinds of experiences, so there may be no such devices in place for them.
  • 4 - Where did the other 75 cents go?
See # 1.
  • 5 - Did other creditors get their full amounts, like GAIA, Government, and whoever else had influence?
No idea. I don't personally think it's right, but normal company-fail practice is that the bank gets paid in full, then in various sequences and percentages the vendors, the "golden" shareholders, and the ordinary shareholders (and in the case of REDjet then the passengsrs come either last or get paid depending on the government bonds/processes set up).
  • 6 - Does Mr. Phillips and Mr. Audain get their full fee for this exercise?
No idea
  • 7 - Is that money part of the missing 75 cents?
See # 1.

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