Saving Air Afrique.

Author:Michaud, Paul
Position:Business in Brief - Air Afrique in debt - Brief Article

Almost at the brink of liquidation, Air Afrique is actively lobbying the French government to come to its rescue. Earlier this year, Callisto Madavo, the World Bank's vice president, revealed that Air Afrique's financial situation - it has an estimated debt of $444m -"made it technically insolvent", and that "any attempt at restructuring or privatisation was difficult, indeed impossible". Six of Air Afrique's fleet based in the Ivorian capital, Abidjan, could now be seized by the airline's creditors anytime. A recent meeting of the 11 African countries that hold 68.44% of Air Afrique's capital, expressed indignation at Mr Madavo's remarks and decided to send to Paris the presidents of Cote d'lvoire (Laurent Gbagbo) and Senegal (Abdoulaye Wade) to consult with the French authorities about a possible rescue operation.

The meeting had hoped that France could come up with at least $67m that Air Afrique needs right now to placate its angry creditors who have threatened to seize the company's fleet of...

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