REDjet formally announces closure, seeks bankruptcy protection

Low cost carrier REDjet which attracted many passengers in Guyana and other parts of the Caribbean today formally signalled its closure and has applied for bankruptcy protection.

The Barbados-based carrier had suspended operations in March after competition from other airlines put it severely in the red. Attempts to get financing from the Barbados and Guyana governments failed and the airline remained grounded.

It issued the following statement today.

“Airone Ventures Limited doing business as ‘REDjet’ hereby announces the suspension of all operations  in Barbados. REDjet profoundly regrets this decision and its impact on its suppliers, staff and passengers.

“REDjet believed that it had secured the full aero-political support of the Government and authorities in Barbados and had it gained access to all markets as a designated national carrier this turn of events could have been avoided. However regrettably this has not been the experience of the airline over the past two years.

“With no consensus at a political or technical level to deliver on these commitments which are critical to the development of any airline there can be no future for REDjet in Barbados. Therefore, despite the best efforts of the airline and its committed staff, the airline has been forced to make the regrettable decision to suspend all its operations.

Creditors

“The company has filed with the Supervisor of Insolvency a “Notice of Intention to Make a Proposal” to the company’s creditors under the Bankruptcy & Insolvency Act. Immediately upon filing all proceedings against the company are stayed. No creditor may therefore exercise any remedy against the company, while the stay is in place, in respect of any debt owing as of 5th June 2012.  Debts accruing for services rendered after filing will be dealt with in the ordinary way since the stay of proceedings does not apply to such debts.  The stay will be in place for 30 days initially but the Court will entertain reasonable applications for extension of the stay to permit a proposal to creditors to be completed.

“The Trustee will at the appropriate time invite creditors of amounts of $250 and more, including Passengers who have purchased tickets with the airline but who have yet to apply for a refund, to prove their debts as required by the Act and also call a meeting of creditors for the purpose of considering and approving the company’s proposal.”

 

Around the Web

Comments