Ghanair Headquarters To Be Auctioned

...To defray ?50bn Court-approved debt
THE DEEP FINANCIAL woes of the distressed national airline, Ghana Airways, took a most unpleasant turn over the weekend when one of its numerous creditors, acting on a High Court order, moved in to foreclose on the company in the process seizing several company vehicles parked at its headquarters premises while holding up normal business for several hours.

In a sun-scorched operation that lasted well over three hours, officials from an Accra based auction company, Yellow Mart, together with court bailiffs clutching a court order and provided with rear-guard support by armed policemen, stormed the premises in the full glare of customers and staff and drove away the seized cars to be auctioned to defray a ?50 billion loan owed the Consolidated Discount House Financial Holding Ltd (CDH), an Accra based brokerage firm.

The court order, which was issued on August 27th last year, also empowers the CDH, owned by a former Ghana Airways Board member, Mr. Fred Kwesi Apaloo, to sell property belonging to the airline, including its headquarters building located in the upmarket Airport Residential Area.

Mr. Apaloo obtained the court order after the struggling airline defaulted in the re-payment of a ?12 billion loan sourced from the brokerage company to handle some exigencies last year.

The auction date has been slated for September 2nd this year after the initial date in May, this year, was stayed to give the airline enough time to redeem the loan, Concord gathered.

Mr. Apaloo could not speak to the National Concord when the CDH head office was reached via phone in the late afternoon of last Friday.

His personal secretary said he was in a meeting. She however promised to get him to react to the story if this reporter could leave his number behind. This was done. At the time of filing this report, his call had not come through (readers should please stay in touch for more details on this).

Minutes into last Friday’s operation, Concord learnt that a crisis meeting was called for the top brass in management apparently to explore ways of containing the situation, which until the incident had been managed quite well since the CDH secured the order about a year ago.

Concord learnt that but for the vigilance of some Ghana Airways workers who helped stave-off attempts by the bailiffs to seize some company buses parked nearby, the number of cars which was seized would have been on the high side. According to an eyewitness account, some of the bus drivers who were heading towards the White Avenue head office turned back after they were hinted by staff members about the operation.

The imposing edifice, commonly referred to as the “White Avenue” built in the late 1980’s, could be sold to the highest bidder by September 2nd, that is barring any court injunction, which Ghana Airways officials confirmed to the Concord is already in the works; (watch out for Ghanair’s response in the next edition of the Concord).

The ominous order, which has been pasted clearly on the glass panel doors that usher one into the waiting room attracted several curious eyes, including that of some customers who had gone to Ghanair’s head office ostensibly to book flight reservations, changes or confirmations. Both members of management and staff, visibly shocked at the turn of events, watched from their offices as excited bailiffs drove away company vehicles marked with red bands.

Other property to be seized and auctioned to defray the cost of the loan, per the high court order, are assets of the Airways Catering Limited (ACL). The catering wing of the airline is so strategically placed that offers for downright purchase or long lease could attract a horde of competitors.

Ghana Airways’ 20 per cent stake in Ghana’s premier 4-star hotel, the plush Novotel is also to be offloaded as directed by the court.

CDH is not the only creditor queuing up on the company. Reports of grounding of Ghana Airways planes in foreign countries including some African countries have become a disturbing norm in recent times. Government sources though have hinted Concord that it would soon announce its programme plan to redeem the troubled airline from its predicaments. “The plan is meant to make embarrassing situations like this, things of the past,” the source said.

Ghanair’s financial problems notwithstanding, the company has also been rocked by agitations by its workers over some unpopular management decisions, a case in point being the $120,000 contract allegedly awarded to Price Water House and Coopers to audit the accounts of the company.