What is airline liquidation?

Published by Charlie Davidson on

What is airline liquidation?

The Namibian state-carrier was formally liquidated on March 26, 2021, after no opposing papers were filed against a liquidation application brought by the Namibia Airports Company (NAC). The Namibian government had guaranteed the lease, which had cost Air Namibia USD1. 1 million per aircraft per month.

What is the legal definition of liquidation?

Liquidation law deals with the process of selling or dissolving a business. The process involves selling the business’s assets or converting them into monetary funds, which are distributed to shareholders, company members, and any outside creditors who are owed money after the company is liquidated.

What is meant by liquidation?

Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due.

What does liquidate money mean?

To liquidate assets means to convert non-liquid assets into liquid assets by selling them on the open market. If the asset is non-liquid, the sheriff will sell it, usually in a public auction in the court, and will give the creditor the owed cash from this sale, while the rest goes back to the debtor.

What happened to Air Namibia?

On 11 February 2021, the Namibian government announced the immediate shutdown and liquidation of Air Namibia due to overwhelming debt and years of financial dependence from the state. At the time of closure, the airline operated nine aircraft and employed approx. 600 staff.

What is the process of liquidation?

Liquidation is the process of converting a company’s assets into cash, and using those funds to repay, as much as possible, the company’s debts. Liquidation results in the company being shut down. Members’ voluntary liquidation – is a way for solvent companies (i.e. those not in financial difficulty) to shut down.

How do you liquidate?

Liquidating Assets

  1. Talk to your lawyer & accountant.
  2. Scrutinize your assets: inventory, assess, & prepare each item for sale.
  3. Secure your merchandise.
  4. Establish the liquidation value of your assets.
  5. Make certain that a sale is worthwhile.
  6. Choose the best type of sale for your merchandise.
  7. Select the best time for your sale.

Categories: Helpful tips