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FINANCIAL NEWS
Bahrain Air shareholders opt for liquidation
13 Feb 2013
(MENAFN) Troubled Bahrain Air surprisingly suspended all its operations with the intention to liquidate its assets, Gulf Daily News reported.
The decision was taken yesterday after an extraordinary general meeting with shareholders.
As the loss-making airline pushed for liquidation, around 300 staff will lose their jobs, according to the paper.
CEO Richard Nuttall said shareholders decided against a new cash injection and have instead opted for voluntary liquidation, adding that staff facing the axe will be fairly compensated.
He also said that all of the carrier’s aircraft were leased and the process of returning the planes would start shortly.
The paper cited a statement saying that the airline had suffered massive losses as a result of unrest in 2011, which led to profitable routes being cancelled and a general drop in passenger traffic through Bahrain.
The statement added that the carrier was also facing restrictions as a result of outstanding debts to the government, which had cost it USD11.87 million in lost revenues over the last three months alone.
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