Home News Dynamic passengers to be refunded
…from US$200,000 bond lodged by defunct airline
The Public Infrastructure Ministry says it has initiated the process to access a bond for the sum of US$200,000 which was lodged by Dynamic International Airways, LLC, in collaboration with their local handling agent, Roraima Airways Inc.
According to the Ministry, “the funds will be used to refund passengers in Guyana who purchased tickets to travel on the now defunct Dynamic Airways, provided that they have not been able to use the whole or part of same to travel.”
Guyana Times was informed that Roraima Airways Inc has submitted to the Public Infrastructure Ministry a list of 609 passengers who are eligible for refund.
The Ministry says it will publish the names of the eligible passengers in the local press, and details for these individuals to uplift their refunds.
Moreover, the Ministry in a released statement assured the affected passengers that it is working assiduously to have the process expedited.
“Passengers eligible for a refund whose names are not published are asked to contact Roraima Airways Inc to access same,” said the Public Infrastructure Ministry.
Dynamic Airways suspended its operations on October 3, 2017, to facilitate its reorganisation of its Chapter 11 case under which the airline filed for bankruptcy.
In an issued statement, the airline had said that it remained committed to honouring all outstanding financial obligations whether to passengers, airport authorities or the Guyana Civil Aviation Authority.
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 Int’l, 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.