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Airline employees awaiting news of compensation.

BAHRAIN Air staff are in limbo as they await news of their severance packages and when they will be paid.

The airline announced on February 12 that it was going into voluntary liquidation after running up more than BD17 million in debts to the government.

It announced the news on the same day that it suspended all services and laid off more than 300 staff.

Passengers who bought tickets for travel on the airline are also waiting to be compensated and have been told to forward any claims to the liquidator.

"The aircraft have already gone back to the leasers and the staff have been let go," said the airline's chief executive officer when it went into liquidation, Richard Nuttall, yesterday.

"I am not involved with the (severance) packages since the company went through voluntary liquidation.

"The decisions, on when and how much money the staff will get, are in the hands of the liquidators and the Labour Ministry.

"Unless the liquidator specifically needs to speak to me, I am no longer involved."

He said there was still no word on the size of severance packages for staff and when they would be paid.

"The liquidator has to go through all the information of the airline, which they are still in the process of doing, and only when they are finished will that information be available," he explained.

Former Bahrain Air staff with credit cards issued by Credimax have had their problems compounded with the issuer freezing their accounts, as exclusively reported by the GDN on Tuesday.

The company took the decision to suspend accounts of all Bahrain Air employees and expatriate Gulf Air staff as a precaution, to prevent them from running up bills they could not repay or leaving the country with unpaid debts.

Staff who can prove they are in employment will have their accounts unfrozen.

Mourad Consultancy, which has been appointed as the liquidator for Bahrain Air, has so far not commented.

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Publication:Gulf Daily News (Manama, Bahrain)
Date:Feb 22, 2013
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