Ghana Airways has reached an agreement with one of its trading partners - A. J. Walters, which last week obtained a court order to appoint provisional liquidators over the airline’s assets in England. The two sides reached the agreement on Saturday and according to Ghana Airways, the appointment of provisional liquidators has been terminated and a winding up petition served on the airline’s office also dismissed.

The court order obtained by A. J. Walters in London allowed it to impound a Ghana Airways DC 10 aircraft that had flown to London and was due to be ferried to Rome for engine re-fitting.

The airline’s board quickly suspended all flights to Europe.

A Ghana Airways official told JOY FM that with the latest development, all flights to Europe, which were suspended, will be resumed on Wednesday June 4. He explained that because Monday and Tuesday are bank holidays in London, further action on the matter would have to be deferred to Wednesday. The national carrier is reeling under pressure as its creditors have over the last few months, initiated very tough actions including grounding of aircraft to collect their debt. The airline is reported to be indebted to the tune of $150 million.