Chronicle Editor
Oliver Kazunga, Acting Business Editor
CREDITORS of the troubled Air Zimbabwe which is under reconstruction have authorised the airline’s administrator, Mr Reggie Saruchera to raise capital required to support its operations.
The decision is one of the resolutions that were passed at the airline’s initial creditor’s meeting held towards the end of last year.
Air Zimbabwe, which has in the last few years been constantly underperforming, was placed under reconstruction on October 4 last year in terms of the Reconstruction of State-Indebted Insolvent Companies Act (Chapter 24:27).
The move was designed to allow Air Zimbabwe an opportunity to clear its debt thought to be upwards of $334 million.
“At the creditor’s meeting, a resolution was sought to give the administrator authority to raise money to support Air Zimbabwe operations. All the creditors approved the resolution sought by secret ballot,” reads part of a statement on resolutions of the initial creditor’s meeting published this week.
“Pursuant to section 5 (1) (D) of the Reconstruction of State-Indebted Insolvent Companies Act (Chapter 24:27), the administrator was duly authorised by all creditors to raise funds necessary to support Air Zimbabwe’s short term turnaround measures, including among others, working capital and acquisition of aircraft.”
The flag carrier’s initial creditor’s meeting also saw the election of Mr Tichawana Nyahuma as the creditors’ representative.
During the reconstruction process, all payments towards debts accrued by the companies prior to October 4, 2018, would be temporarily suspended and settled in terms of this process.
Air Zimbabwe, like most State enterprises and parastatals, has been going through difficult times for a long period owing to mismanagement.
As a result, the airline withdrew from servicing the lucrative Harare-London route to avoid the seizure of its aircraft.
One of Air Zimbabwe’s long haul aircraft, a Boeing 767-200 popularly known as Victoria Falls, was impounded by American General Supplies at Gatwick International Airport in London in December 2011 over debts amounting to $1,2 million.
In 1980, Air Zimbabwe had 18 aircraft flying into 31 destinations but is now limited to Harare-Johannesburg; Harare-Bulawayo and Harare-Victoria Falls routes.
– @okazunga
Online Reporter