T&T gov’t steps in to save BWIA from creditors
Seizure of remaining aircraft averted
Stabroek News
May 28, 2003
(Trinidad Express) The Trinidad government effectively took control of BWIA’s future yesterday with a last-minute telephone call by Junior Finance Minister Christine Sahadeo that staved off moves by international lessors to seize the airline’s five remaining aircraft at a 5 pm deadline last evening.
Having bought itself a few more hours, the government will by today or tomorrow meet with officials of the International Lease Finance Corporation in a desperate attempt to keep BWIA in the air.
Cash-strapped BWIA’s debt portfolio is now US$100 million according to airline directors who Planning Minister Dr Keith Rowley said described the airline as “bankrupt” yesterday.
If confidence can be restored in BWIA, it may prevent the lessors from moving in on the airline, he said.
As a move toward this, the Lawrence Duprey-led BWIA Board has accelerated a review of the airline’s management team led by chief executive Conrad Aleong.
Aleong has indicated by letter to the Board that if his presence at BWIA is preventing the airline receiving financial aid, he was prepared to leave the company.
Duprey returned to Trinidad from London last night and was said to have immediately gone into meetings, possibly to make a decision on his own future at BWIA.
Money owed is US$28 million and includes immediate rent of about
US$4 million to lessors, US$9.1 million in severance and US$2 million in US taxes.
ILFC has also brought forward fees of US$10 million to be paid by
BWIA.
In a May 23 advisory, ILFC warned BWIA that it had until 5 pm
yesterday to come up with a US$5.5 million payment or face seizure of four Boeing 737-800 and one Airbus A340 leased aircraft.
The creditors moved in last week to seize two Boeing 737s in Miami after BWIA failed to pay its dues.
The planes are still impounded in Miami. No money has yet been paid for their retrieval.
At 5 pm, ILFC was scheduled to take BWIA’s aircraft which would
have crippled the entire airline.
But, according to Rowley, Minister Sahadeo telephoned ILFC in the
United States and “convinced them to come to Trinidad and Tobago” to negotiate with the government in an effort to rescue the airline.
This means that the next 48 hours will be crucial to the airline’s future and the government will talk with ILFC to see what can be “salvaged” as an attempt to save BWIA, said Rowley.
He said the government was committed to helping the airline but
there was a limit which he described as a “moving target”.
He was speaking at a press conference at the Eric Williams Financial Complex in Port of Spain yesterday following two meetings between the government, BWIA directors and other private shareholders of the airline.
At the head table with Rowley were Sahadeo, Health Minister Colm
Imbert and Trade Minister Kenneth Valley.
Rowley, who is chairing the Inter-ministerial Committee to determine BWIA’s future, said ILFC officials had been initially reluctant to change their position on BWIA.
“The situation requires direct contact with the lessor,” Rowley
said, noting that what was needed was a restoration of confidence that BWIA’s debts could be paid.
Rowley’s comments followed an update on the airline’s financial
position from directors.
Rowley said a Canadian auditing firm, Zwaig International, which is already doing work in Trinidad has been hired to review BWIA’s
financial position.
