Kazak carrier's former employees protest the lack of payments (220 words)

Published: 1/15/2001

The Kazakhstan carrier, Karagandaavia (which was declared bankrupt in 1998 and subsequently ceased trading), still continues to have problems with creditors, employees and shareholders, due to the fact that the sale of the former airline's assets never took place. On 11th January, over 1500 shareholders and former employees met, to demand the intervention of the Karaganda regional government in order that unpaid salary debts might be honoured through asset sales. According to the ex-employees, the enterprise, having been in bankruptcy procedures for over five years prior to its liquidation, has been unable to pay its debts because the assets remaining are, as yet, unsold. The reason for the delay in liquidating the company's assets is unclear. The company (16.5% owned by employees, but 80%-owned by the State) had been through a number of managers during those five years and not one had, seemingly, been able to arrange for the sale to take place. Last autumn, an agreement was signed with Altair, a company brought in to take over one of the company's assets, Saryarka Airport - with the investment of $2m. Reports imply that the deal remains suspended, which is unsurprising, given the particulars of the enterprise's outstanding debts. The general expectation is that the assets will be sold at auction and the proceeds distributed among the creditors.

Article ID: 2291