Following their pull-out of the Guyana market, Dynamic International Airways has committed to honouring all its financial obligations according to a statement issued.
Dynamic International Airways suspended its operations on October 3 to facilitate its reorganisation of its Chapter 11 Case under which the airline filed for bankruptcy. In an issued statement, the airline said that it remains committed to honouring all outstanding financial obligations whether to passengers, airport authorities or the Guyana Civil Aviation Authority.
In fact, the company stated that those passengers, who booked to travel with their chartered service out of Guyana and New York beyond the October 3 suspension date, will be issued a refund on the un-used portion of their ticket.
While the airlines regret pulling its operations in a very important market, it remains optimistic that it will return but in the meantime thanked its valued customers for their support over the last four years and apologised.
However, the airlines noted that they are soon to enter into discussions with an interested Party about serving the Guyana/New York Market under a new arrangement which is permitted as it seeks to reorganise.
The voluntary Chapter 11 petition was filed by Dynamic Airways with the United States Bankruptcy Court in the Middle District of North Carolina.
This chapter of the Bankruptcy Code generally provides for reorganisation. Moreover, Chapter 11 allows a debtor to propose a plan of reorganisation to keep its business alive and pay creditors over time.
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.
Just a month after filing for bankruptcy, one of the airline’s creditors had moved to the courts to force the airline to liquidate its assists after Dynamic owed some US$1.19 million.