DAC Aviation might be wound up in five months

by Wakili Liam
DAC Aviation

Financially struggling airline DAC Aviation will know its fate on May 6th 2021 as the High Court moves swiftly to complete a petition for the liquidation of the troubled carrier company.

The firm is in court following a petition by Amra Leasing limited over debt entitlements.

“Notice is hereby given that a petition for the liquidation of the above named company by the High Court was presented to the said court on 30 December 2020 by Amra Leasing Limited” reads in a part a gazette notice by Coulson Harvey LLP, advocates for the petitioner.

Through their advocates, they issued and served a Statutory Demand dated 5th June 2020 on the company demanding Sh 3,766,418.00 and a further $107,780.00 (Sh11.7million) being the cumulative amount claimed by the respondents arising from service contracts, with the company to be paid within 21 days from the date of service, in default of which they would commence liquidation proceedings against the company.

The Company filed an application dated 30th June 2020 seeking orders to restrain the respondents from filing and advertising an intended Insolvency Petition based on the Statutory Demand and to set aside and/or vacate the Statutory Demand dated 5th June 2020.

In November last year, former employees of DAC Aviation had also been barred from filing an insolvency case against the company for a Sh15.5 million debt.

The employees who include Stevenson Ndung’u, Nick Musyoka, John Kavulu, Teddy Mbugua, Moses, David Katungu, Austin Mbalo, Ernest Njenga and Mohammed Said had served the airline with a notice demanding payment for service contracts of Sh3.7 million and $107,780 (Sh11.5 million) within three weeks or face insolvency.

DAC Aviation is based at Wilson Airport and is affiliated to DAC Aviation of Canada.

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