BSEC committee to look into United Airways
The committee will submit its findings to the BSEC within 30 working days
On Monday, the Bangladesh Securities and Exchange Commission (BSEC) formed an inquiry committee to look into the affairs of a dying United Airways (BD) Ltd that shut down operations in September 2014.
The five-member committee will have BSEC Additional Director Md Ohidul Islam as team leader, and Deputy Directors Shahrier Perves and Md Shahnows, a Dhaka Stock Exchange (DSE) official, and an official from the Civil Aviation Authority of Bangladesh as members.
The inquiry team will look into issues relating to the suspension and resumption of operations, reconstruction of the board of directors, the trading pattern of securities, and the overall status of the company.
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The team will submit its findings to the commission within 30 working days.
In March this year, the BSEC directed the company to regularise its annual general meetings (AGMs) and complete audits pending for the last four fiscal years.
In June last year, the BSEC also delisted the company from the main board of stock exchanges and put it on the over-the-counter (OTC) market because of the company's weak fundamentals.
In February 2021, the commission recast the company's board of directors to revive its operations.
The BSEC nominated seven independent directors, including aviation expert and Editor of Bangladesh Monitor, Kazi Wahidul Alam as chairman, and removed former Managing Director Tasbirul Alam Chowdhury from the board.
Sources said the firm has drowned in around Tk800 crore of liabilities till now. Of that, Tk355 crore is owed to the Civil Aviation Authority, and the rest of the debt is to banks and other sources.
United Airways was incorporated in 2005 and raised Tk100 crore in a 2010 an initial public offering (IPO). It also issued rights shares in 2011.
Its officials announced an indefinite suspension of all domestic and international flights when the firm did not have the money to cover the cost of operating flights at that moment.
Later, the company resumed its domestic Dhaka-Saidpur flights.
But in March 2016, all domestic and international flights of the company were again suspended indefinitely.
Currently, its paid-up capital is Tk828 crore. Sponsors and directors jointly hold only 2.5% shares, while general investors hold 86.43% shares of the company.
