South African firm bids $207mn for defunct Air Namibia

Defunct Air Namibia owes N$3.5bn to creditors

The liquidators of Air Namibia (SW, Windhoek Int'l) say the defunct state-owned airline's liabilities total NAD3.5 billion Namibian dollars (USD247.3 million), NAD2.3 billion (USD162.2 million) of which is owed to trade creditors and NAD693 million (USD49 million) are unpaid taxes.

This is according to an August 4, 2021, report by joint liquidators David Bruni and Ian McLaren, at which stage it still owed NAD105.5 million (USD7.4 million) in unpaid severance packages to former employees, reported local newspapers The Namibian and New Era. Most of the unpaid taxes result from value-added tax (VAT) and Pay As You Earn (PAYE) employee taxes being years in arrears, according to the joint liquidators.

Bank loans afforded to the collapsed airline total NAD408.7 million (USD28.8 million), while its assets have been valued at NAD1.1 billion (USD77.7 million). According to the liquidators’ report, Air Namibia’s past Boards and management could not be held accountable for any harm or liabilities to the company. "It does not appear that the directors or officers of the company are liable for damages or compensation to...

Namibia pays $109mn for early termination of A330 leases

Namibia has disclosed it paid NAD1.6 billion Namibian dollars (USD109.5 million) to Castlelake to terminate the lease contracts of two A330-200s, msn 1451 and msn 1466, of its now-defunct flag carrier, Air Namibia (SW, Windhoek Int'l).

The country’s Public Enterprises Ministry has eventually taken the wraps off its 10-month negotiation process with the lessor, saying the settlement presented a saving of NAD667 million (USD44.4 million) compared to a default scenario – but still cost Namibian taxpayers NAD5million (USD340,000) in legal fees. The funds were transferred to Castlelake on July 30, 2021, according to a statement by Public Enterprises Minister Leon Jooste.

Air Namibia went into voluntary liquidation in March 2021 and the aircraft have been returned to the lessor. Both are now at Leipzig/Halle airport awaiting conversion into dedicated freighters.

Concerned about its exposure to lease payments that were becoming unaffordable, the Namibian Cabinet in August 2019 already instructed Jooste to visit the company to settle the leases paid by the Treasury and secured through government guarantees. At that point, the...

Gov't finalises deal with Air Namibia lessors

The Namibian government is finalising a deal with Castlelake over NAD2.5 billion Namibian dollars (USD176 million) owed to it by defunct national carrier, Air Namibia (SW, Windhoek Int'l), for two A330-200s since returned to the lessor.

The country’s public enterprises minister, Leon Jooste, told The Namibian newspaper the parties were in the final stages of an arrangement regarding penalties concerning the premature cancellation of the aircraft leases, following the voluntary liquidation of the national carrier in March 2021. He did not divulge the actual amounts being discussed. “We have been negotiating with the lessor for several weeks and will finalise the lease termination agreement soon,” Jooste said.

Under the terms of the contract, the government had provided a guarantee of up to NAD2.5 billion for the 12-year aircraft leases, while a security deposit of NAD94 million (USD6.6 million) would be forfeited if the contract was breached. The failed carrier had been unable to keep up lease payments of NAD32 million (USD2.2 million) per month for both aircraft.

Meanwhile, the Namibian Sun newspaper...

Namibia's FlyWestair adds E145s for route growth