-US based airline will continue to operate flights as scheduled- Gouveia
The voluntary Chapter 11 petition was filed by Dynamic Airways with the United States Bankruptcy Court in the Middle District of North Carolina.
According to the United States Courts website, this chapter of the Bankruptcy Code generally provides for reorganization. Chapter 11 allows a debtor to propose a plan of reorganization to keep its business alive and pay creditors over time.
A statement on Wednesday evening disclosed that this decision was taken in light of the airline being riddled with litigations.
This includes the lawsuits from Hajj flights that Dynamic operated in 2014 for Air India and an arbitration award against Dynamic Intl., finding that the airline was in breach of contract by failing to pay commissions to BKP Enterprises in connection with the Hajj flights.
According to the US chartered carrier, it has filed a notice of appeal and intends to challenge the judgment and award. Moreover, Dynamic Intl. said it has no immediate recourse to stay the judgment and has determined the commencement of the Chapter 11 case is necessary.
During this litigation, Dynamic Intl. added that it intends to continue its normal operations and has arranged for a credit facility to finance both its operations while in Chapter 11 and also its ability to reorganize.
The airline’s CEO, Paul Kraus, said “Operating under the protection of the US Bankruptcy Court will enable us to continue to serve our customers, keep our team employed and work with our vendors while we navigate through the challenges presented. Once we have completed the reorganization process, we expect Dynamic Intl. to emerge as a stronger company with a sound financial structure that is appropriate not only for today’s level of business activity, but also for the future.”
Meanwhile, local representative of Dynamic Airways in Guyana Captain Gerry Gouveia has stated that US-based airline will continue to operate flights as scheduled.
In its three years of operations here, Dynamic Airways has been faced with heavy criticisms with a long list of disruptions in flights which left passengers stranded for hours both at the CJIA and JFK Airport as a result of delays.