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Bangladesh Securities and Exchange Commission has requested the government to exempt United Airways from paying its Tk 355.36 crore debt to the Civil Aviation Authority, to safeguard the investors’ interest.
Last week, BSEC Chairman Shibli Rubayat-Ul-Islam wrote to the Ministry of Civil Aviation and Tourism to take the private airliner’s present condition into account.
The United Airways that has been out of operation since 2015 owes the amount in as different fees to the CAAB.
According to the BSEC, its net due to the CAAB is around Tk 56.87 crore, with a value added tax of Tk 5.65 crore and an income tax of Tk 2 lakh.
The rest Tk 292.81 crore was counted as surcharge at an annual rate of 72 per cent. The debt is swelling every year due to the compound surcharge method.
The airliner is now on the verge of bankruptcy due to the rampant corruption and fund misappropriation by its sponsor directors.
The BSEC said the airline company can’t pay the debt as it currently has nothing but a few unusable aircraft.
Against such a backdrop, it requested the government to waive the debt and made necessary arrangement for renewal of the airline’s Air Operator Certificate (AOC), to protect interests of its 1.6 lakh investors.
When contacted, State Minister for Civil Aviation and Tourism Md Mahbub Ali told The Business Post that his ministry has nothing to do with the debt waiver.
“I am yet to know about the letter. However, my ministry has nothing to do with the debt waiver. The Ministry of Finance will make the final decision over the issue,” he said.
Established in 2005, United Airways limited was listed at the Dhaka Stock Exchange in 2010.
However, it suspended its operation in 2015 due to the massive irregularities and corruption by its directors.
To revive the company, the regulator restructured its board on February 28 and appointed eight independent directors, who took over charge on March 4.
The board held its last meeting on August 11, where the new directors opined that United Airways can be revived only when the existing dues are waived.
On September 19, the securities regulator also wrote to the Registrar of Joint Stock Companies and Firms (RJSC) to ensure that the United Airways’ existing board remains active until the new directors are elected.
At DSE, the company was sent to over-the-counter (OTC) market on January 12.
On Monday, the share of the company rose 4.17 per cent to at Tk 2.5 on the DSE.
As per DSE data, the United Airways has a market capitalisation of Tk 198.74 crore, while its paid-up capital is Tk 828 crore.
The number of the securities of the company is 82.81 crore.
