nemesis mk1
5th Jul 2008, 17:26
Hi guys i got this from avcom.
Nationwide Airlines could soon come out of liquidation and be taken over by a new airline that will begin operating from Durban International Airport in three months.
A proposal to buy the airline is on the table.
If the process to accept and finalise the proposal goes ahead smoothly, the new airline will start operations in a few months, in time for the busy festive season.
Whether the new airline would operate under the Nationwide name or start afresh with a new identity is still being discussed.
This move would come on the back of a recent announcement by Emirates Airlines to abandon plans for direct flights between Durban and Dubai due to high fuel costs.
Haroon Laher, a Johannesburg insolvency attorney representing Nationwide, said he was in the process of drafting legal documents following a successful meeting with the potential buyer this week.
A meeting between the company's attorneys and the liquidators will take place next week before the process goes further.
"We have a very, very good proposal. But it is dependent on the liquidators' input.
"The consequences of an acceptable transaction by the liquidators is that the company will come out of liquidation and a compromise will be sought regarding liabilities to all creditors.
"All employees will be considered for re-employment (by the new company)," he said.
Laher said there was a process to be followed and it was difficult to say when, if the proposal was accepted by the liquidators, the new company would begin operating.
"But if all goes well and there are no hiccups, it could start in about three or four months' time.
"At best, it could be in three months," he said.
He said obstacles to a swift start-up by the new company would be if a creditor was unhappy with the structure of the deal or refused to accept the compromise made in the amount paid to them.
While Laher would not give details regarding the identity of the potential buyer or what kind of airline would be operated, sources said it would operate as a low-cost airline to rival kulula.com, 1Time and Mango.
Laher also confirmed that there were strong indications the company would use Durban as its headquarters.
Nationwide chief executive Vernon Bricknell will not be retained to carry the company forward, but his expertise and knowledge may be used by the company during its launch.
Some members of the airline's management team may also be considered for employment.
Some key employees in Durban have already been contacted to establish their availability should the new airline take off.
Rumours that the interested party was associated with Dubai could not be confirmed.
Nationwide was provisionally liquidated at the end of April after suffering the knocks of losing an engine late last year and the subsequent grounding of its fleet during the festive season.
The final nail in its coffin was when a black economic empowerment deal with African General Equity fell through.
Nationwide Airlines could soon come out of liquidation and be taken over by a new airline that will begin operating from Durban International Airport in three months.
A proposal to buy the airline is on the table.
If the process to accept and finalise the proposal goes ahead smoothly, the new airline will start operations in a few months, in time for the busy festive season.
Whether the new airline would operate under the Nationwide name or start afresh with a new identity is still being discussed.
This move would come on the back of a recent announcement by Emirates Airlines to abandon plans for direct flights between Durban and Dubai due to high fuel costs.
Haroon Laher, a Johannesburg insolvency attorney representing Nationwide, said he was in the process of drafting legal documents following a successful meeting with the potential buyer this week.
A meeting between the company's attorneys and the liquidators will take place next week before the process goes further.
"We have a very, very good proposal. But it is dependent on the liquidators' input.
"The consequences of an acceptable transaction by the liquidators is that the company will come out of liquidation and a compromise will be sought regarding liabilities to all creditors.
"All employees will be considered for re-employment (by the new company)," he said.
Laher said there was a process to be followed and it was difficult to say when, if the proposal was accepted by the liquidators, the new company would begin operating.
"But if all goes well and there are no hiccups, it could start in about three or four months' time.
"At best, it could be in three months," he said.
He said obstacles to a swift start-up by the new company would be if a creditor was unhappy with the structure of the deal or refused to accept the compromise made in the amount paid to them.
While Laher would not give details regarding the identity of the potential buyer or what kind of airline would be operated, sources said it would operate as a low-cost airline to rival kulula.com, 1Time and Mango.
Laher also confirmed that there were strong indications the company would use Durban as its headquarters.
Nationwide chief executive Vernon Bricknell will not be retained to carry the company forward, but his expertise and knowledge may be used by the company during its launch.
Some members of the airline's management team may also be considered for employment.
Some key employees in Durban have already been contacted to establish their availability should the new airline take off.
Rumours that the interested party was associated with Dubai could not be confirmed.
Nationwide was provisionally liquidated at the end of April after suffering the knocks of losing an engine late last year and the subsequent grounding of its fleet during the festive season.
The final nail in its coffin was when a black economic empowerment deal with African General Equity fell through.