bushveld
9th Jul 2008, 12:51
Air Macau crashes PDF Print E-mail
Wednesday, 09 July 2008
by Rodolfo Ascenso
Air Macau is close to bankruptcy. With losses up to MOP 100 million just within May and June, following another MOP 100 million during the first quarter of this year, chairman of the Board of Directors Zhao Xiaohang, had no choice but to ask for a meeting of shareholders “in order to have a resolution”.
In a letter dated July 1, 2008 Zhao stated he, “with deep regret” is forced to inform the shareholders “that since April 30, 2008 the net worth of the company had fallen below half of the value of the company’s capital”, and had triggered the Macau Commercial Code Article 206.
Article 206 of the Commercial Code states that when a company administration apprehend to have losses up to half of its capital, the body must propose that “the company be dissolved or that the capital be reduced, unless shareholders, within 60 days from the resolution that arises from such a proposal, pay amounts in money that replenish the assets to a measure equal to the value of the company capital”.
Air Macau’s authorised capital is supposed to be MOP 400 million. However, a search in the Trade Register shows that the decision to upgrade from 200 million to 400 million was never registered. Nevertheless a decision in that direction was made and approved by shareholders and the capital realised.
This question is important if the shareholders’ decision is carried out via the third option.
With losses of MOP 220 million accumulated over the past years, as well as MOP 105 million during the first quarter of 2008, and more than MOP 100 million during the past two month, it is still not clear how much shareholder have to input.
Nevertheless, it is already clear that the decision will be made by the main shareholder of Air Macau, Air China Limited.
Owning 51 percent of the capital, Air China Limited has the final word as they hold the responsibility for the present situation.
In fact, the actual board of directors, with David Fei as CEO, was named and supported by Air China Limited for the last year despite the accumulated losses.
Macau Daily Times understands that other shareholders are not keen to inject more money into a company that has a record of losses in a region where business is flourishing.
Thus, the future of Air Macau is in the hands of Air China Limited and it is still unclear if they wish to inject more money or just allow Air Macau to go into bankruptcy.
Air Macau is owned by Air China Limited (51 percent), SEAP – an investment fund of Portuguese airline TAP – (20 percent), Stanley Ho’s STDM (14 percent), Evergreen Airways Service (Macau) (5 percent), Macau SAR Government (5 percent) and several others (5 percent).
So far the shareholders’ meeting (EGM) requested by the chairman of the Board of Directors had not been appointed.
An ordinary meeting of directors is scheduled for July 31.
Wednesday, 09 July 2008
by Rodolfo Ascenso
Air Macau is close to bankruptcy. With losses up to MOP 100 million just within May and June, following another MOP 100 million during the first quarter of this year, chairman of the Board of Directors Zhao Xiaohang, had no choice but to ask for a meeting of shareholders “in order to have a resolution”.
In a letter dated July 1, 2008 Zhao stated he, “with deep regret” is forced to inform the shareholders “that since April 30, 2008 the net worth of the company had fallen below half of the value of the company’s capital”, and had triggered the Macau Commercial Code Article 206.
Article 206 of the Commercial Code states that when a company administration apprehend to have losses up to half of its capital, the body must propose that “the company be dissolved or that the capital be reduced, unless shareholders, within 60 days from the resolution that arises from such a proposal, pay amounts in money that replenish the assets to a measure equal to the value of the company capital”.
Air Macau’s authorised capital is supposed to be MOP 400 million. However, a search in the Trade Register shows that the decision to upgrade from 200 million to 400 million was never registered. Nevertheless a decision in that direction was made and approved by shareholders and the capital realised.
This question is important if the shareholders’ decision is carried out via the third option.
With losses of MOP 220 million accumulated over the past years, as well as MOP 105 million during the first quarter of 2008, and more than MOP 100 million during the past two month, it is still not clear how much shareholder have to input.
Nevertheless, it is already clear that the decision will be made by the main shareholder of Air Macau, Air China Limited.
Owning 51 percent of the capital, Air China Limited has the final word as they hold the responsibility for the present situation.
In fact, the actual board of directors, with David Fei as CEO, was named and supported by Air China Limited for the last year despite the accumulated losses.
Macau Daily Times understands that other shareholders are not keen to inject more money into a company that has a record of losses in a region where business is flourishing.
Thus, the future of Air Macau is in the hands of Air China Limited and it is still unclear if they wish to inject more money or just allow Air Macau to go into bankruptcy.
Air Macau is owned by Air China Limited (51 percent), SEAP – an investment fund of Portuguese airline TAP – (20 percent), Stanley Ho’s STDM (14 percent), Evergreen Airways Service (Macau) (5 percent), Macau SAR Government (5 percent) and several others (5 percent).
So far the shareholders’ meeting (EGM) requested by the chairman of the Board of Directors had not been appointed.
An ordinary meeting of directors is scheduled for July 31.