One of the unresolved issues that Succeeded President Daniel Nobo of Guillermo Lasso’s government should be determined tame closure. The public airline has been in liquidation for three years and seven months; However, currently the process is not even 50% complete.

Debts, lack of funds, Problems with the sale of assets and administrative hurdles prevented and delayed the closure of the public company, which began on May 19, 2020, on the orders of then-President Lenín Moreno.

Although the deadlines were set, they were not respected and were extended due to the complexity of the procedure.

In June 2023, Guillermo Lasso issued Executive Decree 778, in which he gave by May 2025 to complete the Darkness process and other public companies that are also in liquidation from 2020. If the liquidation is not completed within 24 months, the mandate can be renewed.

Currently, the liquidation of an airline represents a overall progress of 46.11%, according to information from the Society for Coordination of Public Enterprises (EMCO).

Only the closure of national stations has been completed, other areas are recording varying progress:

With all this scenario, the biggest problem that slows down the liquidation is that Liabilities far exceed assets, described Jorge Benavides, the highest authority on the EMCO board.

Benavides spoke to EL UNIVERSO after President Daniel Noboa ordered that analyzes and studies be carried out for the extinction and liquidation of EMCO.

The head of the entity explained that in the case of Tame, the accounts are “fair” to know the exact amount of assets and liabilities.

“It is still not entirely clear what the exact responsibility is and without that information it is difficult to move forward,” he commented.

The airline’s deficit amounts to about 307 million dollars, “which cannot be covered by assets, as they amount to $14 million,” EMCO revealed.

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No one is interested in buying the plane

Of the eight aircraft the company had, six have already been sold, but they are gone two Embraer aircraft which cannot be sold because Their engines don’t work. EMCO admits that “the two aircraft do not arouse much interest among bidders”.

However, they are trying to find a buyer again, so on November 17, an invitation was opened for the direct and international sale of the aircraft, which are estimated at 1.2 and 1.1 million dollars, respectively.

If the process fails again, as on previous occasions, management The sale will last throughout 2024.

There is growing concern that on December 31, 2023 the contract of use signed with Quiport ends, for the parking of Embraer 190 HC-CGF and HC-CGG aircraft at Mariscal Sucre Airport, in Tababela.

If the sale of the two aircraft is not completed by the end of this year, Quiport will be asked to extend the contract until June 12, 2025, which is the deadline set by Regulation 778.

“The cooperation provided by MTOP and EMCO, or whoever takes their place, is necessary and irreplaceable,” the entity stated.

The sale of the two aircraft does not satisfy the volume of liabilities to be covered for the liquidation of Tame.

Tame’s fleet consisted of 8 aircraft, the remaining two of which could not be sold. Photo: taken from Tame’s Flickr account. Photo: FABRICIO Burbano

Millions of debts with Petroecuador

The situation with Petroecuador is serious, Tame tells him owes more than $235 million in fuel it was not paid, Jorge Benavídez pointed out.

In March 2021, the state oil company seized the offices and parking lots of the Tame building in Quito. Several floors of the property are in the auction process.

The two public companies have reached an agreement that 70 percent of the entire Tama liquidation process belongs to the oil company and 30 percent to the company’s creditors, such as workers, government entities and suppliers.

Petroecuador is Tame’s main creditor, with claims of $140 million plus interest.

The oil company and the Unemployment Fund confiscated all the real estate belonging to Tame, so the process of selling the airline’s real estate was never started because there is no property for sale.

The Civil Aviation Administration confiscated the equipment

The Directorate General of Civil Aviation (DGAC) seized Tama servers and now they have to be bought for new ones and the procurement process has to start.

EMCO points out that although DGAC seized and sold at auction one aircraft (Kodiak 100), it is not known whether the obligations to the Directorate have been settled or not. And new coercive processes were initiated.

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Entities do not facilitate processes

The Coordination Society points out that several state entities do not provide facilities for the process ends started when Tame was active.

That the National Service for Public Procurement (Sercop) prevent the closure of the contracting process until the contracts that were in force are completed and liquidated or until the pre-contracting processes are completed.

However, EMCO warns that this does not apply because a company in liquidation is prohibited from carrying out procedures related to its corporate purpose.

In addition, the Ministry of Transport and Public Works “does not want to receive” a passive file related to debts with domestic and international suppliers and Petroecuador.

Lack of liquidity to pay obligations

According to Tame’s financial reports, as of November 30, 2023. 321.9 million dollars are needed to settle all recorded liabilities. The value corresponds to the total obligation, not including interest.

A lack of liquidity also prevents a company from honoring the payment of judgments against it.

“Therefore, the support of the Ministry of Economy and Finance in this sense would be very important,” the company’s report points out.

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No refunds for airline tickets

Considering the conditions of the liquidation, due to the lack of economic resources and due to the order of priority in the payment of obligations, Tame did not pay the amounts corresponding to the airline tickets.

EMCO confirms that passengers have not been paid compensation in the approximate value of 2.5 million dollars. “This amount has not been paid to any client or legal entity,” the entity states.

Possible solutions

With all the weight of debts and administrative problems, the Coordinating Society of Public Enterprises proposes four actions to eliminate the inconvenience.

You are looking for new office buildings. That public institutions speed up the closure of ongoing processes.

For Petroecuador to agree to forgive $87 million in interest on a $140 million debt.

This is supported by the Ministry of Economy and Finance. And that the Ministry of Transport and Public Works cooperates with the administrative department.

The president of the EMCO board commented that “Pitoma has always been tame.” one of the most serious problems because of the size he had company”.