Airline Insel Air is bankrupt. The court in Willemstad on Curaçao has determined that appeal on Tuesday. The court refused to approve the creditors’ agreement around the Curaçao company.
This means that after almost thirteen years the flights of Insel Air between Curacao, Aruba and Bonaire will end. Four years ago, the airline flew at more than twenty destinations and more than 2 million passengers were transported each year. Society has been struggling for a long time. The company has a debt of more than 165 million Antillean guilders, converted over 80 million euros.
Curator Rogier van den Heuvel said immediately after the statement that there will hardly be any money for the creditors. “They better do not count on anything.” For example, the airline does not own any aircraft.
According to the court, takeover candidate interCaribbean did not provide any assurance about compliance with the creditors’ agreement. TilgentCapital Trust, which initially agreed to take over Insel Air, has withdrawn.
The Curaçao government invested more than 16 million euros in Insel Air in 2017. The bankruptcy is a new blow to the economy of the island, which has been shrinking for two consecutive years.