BSEC orders United Airways to regularise general meetings, complete audits

The Bangladesh Securities and Exchange Commission (BSEC) directed United Airways (BD) Ltd to regularise its annual general meetings (AGMs) and complete audits that are pending for the last four fiscal years.

The commission issued a letter in this regard last week.

An audit firm from the BSEC's panel auditors will complete the audits for the company's financial statements for 2017-18, 2018-19, 2019-20, 2020-21 fiscal years.

In June last year, the BSEC delisted the company from the main board of stock exchanges and sent its shares to the over-the-counter (OTC) market because of the company's weak fundamentals.

On 28 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.

Kazi Wahidul Alam said the company has huge liabilities to its related parties like banks and the Civil Aviation Authority of Bangladesh. 

"In this situation, it is very difficult to carry out the company's business activities." 

He said looking for entrepreneurs for the company to resume operations is not, but huge liabilities is the problem.

"Nobody wants to take over a company with huge liabilities."

"We are trying our best to move the business forward, but now we refrain from disclosing information before any concrete decision," he added.

Sources said the firm has become submerged by around Tk800 crore in liabilities till now. Of the amount, 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 through an initial public offering (IPO) in 2010. It also issued rights shares in 2011. 

Now, the firm's operations have been closed since September 2014 through an emergency press conference.

The airline officials announced an indefinite suspension of all domestic and international flights of United Airways. 

The firm did not have the money to cover the cost of operating flights at that moment. 

Later, the company resumed its domestic flights through Dhaka-Saidpur. 

But on 6 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. 

The last trading price of the company's shares was Tk2 each at the OTC market of the Dhaka bourse.