Bahrain Air (Bahrain International) is set to file for bankruptcy on February 19, the Gulf Daily News claims. Though the carrier suspended operations and entered into voluntary liquidation in 2013, it has not yet legally entered into bankruptcy. Once filed, millions of dinars in severance packages owed to the airline's 345 ex-employees could be wiped out in addition to other sizeable debts owed to other firms. "The airline is filing for bankruptcy on February 19 which means that all the 75 individuals (who have cases pending) and any companies with cases against it will get nothing," a lawyer arguing on behalf of former Bahrain Air staff said. "Because they are filing for bankruptcy in February then all those cases in which verdicts were due in March will be useless." The airline had previously agreed severance packages of 24 days' pay for each year its employee had worked, in addition to compensation for their notice period and leave, as well as indemnity for expatriates. Prior to its voluntary liquidation in 2013, Bahrain Air flew to 17 destinations. Its demise was partly blamed on sustained financial losses which stemmed from the "unstable political and security situation," in the country at the time, which forced it to cease operations.
Defunct Bahrain Air to file for Bankruptcy in late February
© Tis Meyer (PlanePics.org)
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