Rossair Contracts again
Picked this up from Business day. Anyone got the facts!!
Financial Services Correspondent
A LIQUIDATION bid is believed to have been launched against a division of RossAir, with implications for six banks owed R250m by the flight specialists.
RossAir is one of the largest privately owned South African aviation companies, ferrying people within SA and across borders on either a contract or charter basis.
But, with most of its contract deals inked in dollars, RossAir's acting CEO Lance Brogden said RossAir Contracts had taken a knock due to the rand's 30% gain against the dollar in the past year.
Although sources said a bid to liquidate RossAir Contracts was launched by a creditor this week, Brogden was unaware of this.
"No papers have been served on us, but RossAir Contracts is in a very tough spot at the moment, no doubt about that."
He said the squeeze on Contracts "makes it tight for the whole company, but we are looking at ways of restructuring the business".
However, Brogden stressed that the other divisions, including its executive air charters, were doing well.
Two banks, Investec and Imperial Bank, refused to comment.
Oct 23 2003 07:34:50:000AM Rob Rose Business Day 1st Edition