Demerara Bank has assured that it has some US$4.4 million in securities to cover the US$3.1 million owed it by the now bankrupt Guyana Airways 2000 and was confident of recovering its full dues.
GA 2000 winding up
The receiver appointed by Demerara Bank Limited to wind up the affairs of the now bankrupt, Guyana Airways 2000 is yet to receive a list of its assets.
Stabroek News
August 9, 2001
The bank issued a release last night in response to what it said were "certain bogus and baseless rumours" that had been fabricated and were being spread about it.
The release said its deposits in recent months were increasing moving from $7.8 billion at July 6, to $8.05 billion at August 7.
"We wish to clarify that Demerara Bank Ltd is in a good liquid position and will make a good profit. Our results have been impressive up to Year 2000 and we shall make a good profit come year ending September 30, 2001.
Last week, Demerara Bank appointed Ronald Alli as receiver after the airline first failed to attract a strategic investor, which would have allowed it to renew the lease on its aircraft and later to form a strategic operational alliance, which would have enabled it to resume its operations which it suspended in May.
List of assets not yet available
As a result, Ronald Alli, the receiver, told Stabroek News that he was reluctant to comment on the government's advertisement for expressions of interest into the route rights that had been held by the airline. But he said that he had noted the advertisement in the newspapers at the weekend and had queried it.
However, informed sources told Stabroek News that the route rights had been leased by the state to GA 2000 for a period of five years and at this time were practically worthless. Another source said that GA 2000's ownership of the route rights were based on performance and could have been withdrawn if the airline did not meet its obligations under the contract.
Head of the Presidential Secretariat, Dr Roger Luncheon, told a media briefing earlier this month that the government was moving to ensure that the slot vacated by GA 2000 was filled before the beginning of the Christmas season when large numbers of Guyanese traditionally return home.
He said too that one airline, Universal Airlines, had been granted a provisional licence and another, Air Guyana Inc, was in the process of satisfying the conditions required for the granting of a licence.
Among the route rights for which the government advertised for expressions of interest are Georgetown - Port of Spain; Georgetown - Paramaribo; Georgetown - Santo Domingo; Georgetown - Grenada; Georgetown - St Lucia; Georgetown - Bridgetown, Barbados; Georgetown - Haiti - New York; Georgetown - New York; Georgetown -Miami; and Georgetown - Toronto.