24 Jun 2005

Bankruptcy hearing for Samoa Air set down for July

10:34 am on 24 June 2005

A Bankruptcy Court in the United States will have a hearing in July over whether Samoa Air will be able to change its bankruptcy status.

The move has the potential to liquidate the company which has now relocated from Pago Pago to California in the US.

Samoa Air was grounded in September 2003 and in December that year filed for bankruptcy protection.

It's US license to fly has also been revoked.

Our correspondent in American Samoa, Fili Sagapolutele, says there are 135 listed creditors, including former employees who are owed outstanding wages..

"How long that will take before the judge can make a final decision is up to the Bankruptcy Court at this time. But local residents are closely watching this case with lots of people listed as creditors that's owed money by Samoa Air, so they want to see what's going to happen to the company."

Fili Sagapolutele.