Long pay wait for airline workers

By DANIEL RIORDAN aviation writer

Former staff of Tasman Pacific (alias Qantas NZ) are having to wait for their wages as well as their superannuation payments.

Their $15.5 million in superannuation payments are not at risk, and is expected to be paid in about six weeks.

But their wages - estimated at almost $13 million - are less secure.

Receiver Michael Stiassny said yesterday that payment of wages depended on money being collected from Tasman Pacific's debtors - including the Ministry of Economic Development.

A letter, dated May 2, from the receivers to Jim Anderton's ministry asks the ministry to pay the $21,758.38 it owes the airline.

A ministry spokeswoman said the debt was for travel by Companies Office staff.

Workers are treated as preferential creditors under the 1967 Insolvency Act for unpaid wages and holiday pay up to a maximum of $6000 before tax. Unionists believe it could be months before the receivers release the money.

Their members rank third behind the receivers or liquidators and the winding-up creditor, who receives preference for legal and other associated costs.

Mr Stiassny would not reveal how much money was being sought from debtors, and said it was still too early to determine the size of the company's debt - estimated in some quarters at more than $100 million, including plane leases.

He had no comment on plans to put the company into liquidation.

Bernie Montgomerie, principal of insolvency experts Montgomerie and Associates, was last week hired by one of Tasman Pacific's creditors, Base Care, to spearhead a liquidation effort. Other creditors have since joined the action.

Base Care, which provided valet parking services to Qantas NZ, made a formal statutory demand on Tasman Pacific for repayment of its debt of close to $120,000. If it does not get the money within 15 working days - which seems almost certain - it can seek to liquidate the company.

Mr Montgomerie said yesterday that he had his first meeting with creditors last week. He said their anger with directors was very real but, because of the cost and time involved, he was unlikely to proceed until he was appointed as liquidator.

Moving the company from receivership into liquidation would allow creditors to hold directors and shareholders personally accountable.

The receivers had 15 working days (from Monday last week) to file a notice of opposition to the liquidation move . The High Court would then hear the creditors' petition, but that could take several weeks.

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