It is unclear whether the bankrupt estate of WOW Air will be able to fully settle salary-related preferential claims, says Sveinn Andri Sveinsson, Supreme Court Attorney and one of the trustees of the estate, RÚV reports. WOW Air declared bankruptcy in March of this year. The estate has approved salary-related preferential claims amounting to ISK 3.8 billion ($31,224,512 / €28,236,014). The estate’s assets are still being sold and its finances fluctuate week to week. The trustees met with the Icelandic Cabin Crew Association this week.
A Standard Meeting
There was nothing unusual about the meeting between WOW Air’s trustees and representatives of the Icelandic Cabin Crew Association, including the Association’s lawyer, Sveinn Andri stated. During the meeting, the trustees reviewed flight attendants’ demands, invoices, and other matters of dispute, the nature of which was not clarified. More meetings are expected in the future.
About 450 flight attendants have made salary-related preferential claims on the estate. A lot of work has been done to review these claims in detail, Sveinn Andri stated, however, it is unclear at the moment whether the estate will be able to pay outstanding salaries and salary-related fees.
Attempt to Settle All Preferential Claims
The Wage Guarantee Fund will repay a portion of the salaries, but it remains to be seen how much of the remaining balance the estate will be able to settle. All parties with preferential claims are equal in the eyes of the trustees and will receive equal pay. The trustees’ policy is to attempt to settle all preferential claims to prevent debts from falling on the government.
According to an article by Vísir in November, the estate is still disputing claims amounting to approximately ISK 1.3 billion ($10,698,773 / €9,674,486). Another division of estate meeting has been scheduled for January 30 to settle this dispute. The six thousand claims that have been declared of the estate amount to ca ISK 151 billion ($1.2 billion / €1.1 billion). The estate will not consider non-preferential claims as it is clear that the estate will not be able to pay them.
WOW Air was an Icelandic ultra-low-cost carrier founded in 2011 that operated services between Iceland, Europe, Asia, and North America.