Fastjet Zimbabwe, a subsidiary of Africa´s low-cost airline Fastjet, has sold one of its Embraer 145 aircraft for USD 2.2m as part of a settlement with creditor Solenta Aviation Ltd., the company said.
Fastjet entered into an agreement with Solenta to satisfy money owed Solenta relating to the maintenance and other aircraft related support activities of its Zimbabwean operations.
Following the suspension of the company´s flight operations in Mozambique, one of the company´s Embraer 145 aircraft remained idle and needed heavy maintenance. Following the completion of the heavy maintenance, the company entered into an agreement with Solenta over the Sale of that Embraer 145 to settle part of Solenta´s Creditor Position.
The Consideration in respect of the Sale was paid to the company by way of receipt of a credit note from Solenta, reducing the Group´s creditor account owing by fastjet Zimbabwe to Solenta from USD3.6 m to USD1.4 m as at 31 March 2020. The aircraft has been disposed of at a premium to its independent valuation.
Solenta is a related party to the company by virtue of being a substantial shareholder as defined in the AIM Rules and the Sale has been identified as a related party transaction under Rule 13 of the AIM rules but was not identified as such at the time.
Fastjet connects the three major cities in Zimbabwe by flying between Harare and Victoria Falls and Harare and Bulawayo. Internationally the airline offers flights from Harare and Bulawayo to Johannesburg in South Africa.