KABUL: An Aruban court has officially declared Tiara Air (3P, Aruba) bankrupt following a motion filed earlier this month by several disgruntled employees claiming unpaid back wages.
According to local news outlet Noticiacla, the ruling was issued on Monday, November 28. In it, the judge agreed with the applicants that given continuing uncertainty surrounding the airline’s finances, especially the date of disbursement of USD40 million worth of revenue still locked up in Venezuela, the company should be declared bankrupt in the interests of protecting the creditors’ claims.
Records also showed that Tiara Air had not made any payments since November 20, 2015.
As previously reported, Tiara Air had its AOC suspended earlier this year after efforts to resume commercial operations using one of its Shorts 360s failed.
