Creditor wants Air Malawi to close

Air Malawi, the perpetually ailing national flag carrier, needs to convince Justice Dr Michael Mtambo on July 26 why it should not close shop.

Air Malawi’s creditor, Bravo Capital 23405 of Florida in the US, has petitioned the High Court (Commercial Division) to wind up the company.

A winding-up petition is by far the most serious action that can be taken against a company. Often, it is because the company has broken all the trust the creditor had.

In a notice published in the media, the creditor’s lawyers, Chisanga and Tomoka, have advised any creditor or contributory of Air Malawi to support or oppose the making of an order on the petition before Justice Mtambo.

The lawyers have urged any party that intends to appear on the hearing of the petition to give a written notice of intention by July 19.

Nation on Sunday could not establish how much Air Malawi owes the US company.

But in 2010, the troubled airline had to make a commitment through the same court to a Moroccan firm, Scecma Moroccan Engine Services, to settle a K520 million (about $2m) debt.

Before the agreement to settle the debt was reached, the Moroccan firm wanted the court to appoint a liquidator to investigate Air Malawi’s assets situation and take the assets into custody.

In 2010, Air Malawi had a debt of K4 billion (about $16m) and government said the bedridden airline needed a further K1.8 billion (about $7.2m) to normalise operations.

Government promised to rescue the company, but the firm continues to face a bleak future.