InterCaribbean ordered to provide security to enable InselAir

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bimjim
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InterCaribbean ordered to provide security to enable InselAir

Unread post by bimjim » Sat Dec 29, 2018

https://www.thedailyherald.sx/islands/8 ... ir-restart

InterCaribbean ordered to provide security to enable InselAir restart
29 December 2018

WILLEMSTAD

InterCaribbean Airways must provide security to enable a restart of InselAir. If the company does not do this, it would have to pay a penalty of US $500,000, the Judge ruled on Friday in the injunction filed by InselAir and trustee Roger van den Heuvel. Later that same day, the Judge in the bankruptcy case granted the trustee until January 15, 2019, to inform the Court about the execution of the verdict.

The Judge also requested the trustee to inform the Court by January 15 at the latest about whether “sufficient comfort” has been obtained from Curaçao Civil Aviation Authority (CCAA) concerning the fact that the contemplated shareholders structure, including usufruct of the Curaçao government, will not lead to a withdrawal of the Airline Operation Licence by CCAA.

The Court granted InselAir suspension of payment on March 14, 2017. InterCaribbean, which is based in the Turks and Caicos Islands, has shown interest in investing in InselAir and in taking over its shares.

Parties involved agreed on a so-called “Heads of Agreement” with other stakeholders, such as the shareholders and Country Curaçao, as a “binding legal framework for the conclusion of the purchase of the shares in order to safeguard the future existence of InselAir.”

The purchase price of the shares was set at $1 million. With regard to InterCaribbean’s investment it was determined that it would make $11,050,000 available for the creditors, approximately $1,5 million of which would be paid after signing of the Sales and Purchase Agreement.

A concept agreement was closed with the creditors, with more than two-thirds of the creditors voting in favour. Together, InselAir’s creditors are good for more than 75 per cent of the recognized debt of NAf. 133 million.

However, ratification of the agreement has not yet taken place as InterCaribbean has not yet provided any security. Therefore, the Court delayed a decision about the ratification until Friday, December 28.

InselAir and its trustee filed an injunction to obtain “timely provision of satisfactory assurance” that InterCaribbean would approve of the agreement, under forfeiture of a penalty of $11,050,000, in case of non-compliance.

The airline also called upon InterCaribbean to make Embraer aircraft of the types 120, ERJ and 145 available within two weeks after the verdict, against weekly penalties of $100,000, in case of non-compliance.

Parties also wanted InterCaribbean to do all in its power to set a date for the transfer of InselAir’s shares, no later than by the end of January 2019.

The Court stated that the agreements made in the Heads of Agreement imply that InterCaribbean has the obligation to provide enough security for the agreement to be ratified.

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Re: InterCaribbean ordered to provide security to enable InselAir

Unread post by bimjim » Sat Dec 29, 2018

https://www.curacaochronicle.com/post/l ... certainty/

Court: InterCaribbean must provide certainty
Dec. 29, 2018

WILLEMSTAD – InterCaribbean Airways must provide certainty in time to enable a restart of the embattled local airline InselAir. If the aviation company from Turks and Caicos does not comply, they must pay a penalty of 500,000 US dollars.

The judge ruled this afternoon in interlocutory proceedings filed by InselAir and the superintendent representing the creditors.

This afternoon at 15.00 is the judgment of the bankruptcy judge. Then it will be known for sure whether InselAir will continue to exist.

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