Slow going upsets Tasman Pacific creditors

By DANIEL RIORDAN aviation writer

The liquidators of Tasman Pacific Airlines (which flew as Qantas NZ) have released their first report, but say they have yet to form a view on the directors' role in the airline's demise.

Their lack of progress has disappointed creditors and reignited concerns that the liquidators, who were appointed by the airline's sole shareholder, Zazu, might go easy on the directors - all of whom are also directors of Zazu.

The liquidators' report updates the airline's financial position from the time of the receivers' report (April 21) to the time of liquidation (June 8).

It estimates that after secured and preferential creditors are paid out, some $3 million will be available to pay unsecured creditors owed a total of $127.5 million. That figure breaks down into trade creditors owed $51 million, employees owed $25 million and shareholders owed $16 million. Inter-company debts are estimated at $4.5 million and $31 million is owed on aircraft leases.

Liquidator Arron Heath of Meltzer Mason Heath said that he received a statement from the airline's directors setting out their version of events leading up to the airline's demise only after his report had gone to the printers. For that reason there is no comment on the directors' actions in the report.

The statement was included in the 2000 reports mailed to creditors this week.

But creditors say the statement sheds little light on the reasons for the airline's demise.

One of these is Colin Anderson of valet parking company Base Care, who said he was also disappointed and frustrated with the liquidators' general lack of progress.

But Mr Heath said that he had asked directors several weeks ago for some background on the company's demise. The directors then expanded that request into preparing a statement which runs through the actions they took to try to keep the company alive, including almost clinching a rescue deal with Qantas Airways.

Mr Heath said he hoped to be able to provide some comment on directors' actions at creditors' meetings on August 14, but would not be issuing another report before then.

He said he understood the directors' caution.

"There was a lot of criticism directed their way immediately after the company went into receivership from some quite senior people in Government and elsewhere. As a result of that, I guess they're just being prudent about what they say."

Mr Heath said former chairman Ken Cowley, who resigned from the board three weeks before the airline went into receivership, would not be able to attend the simultaneous creditors' meetings in Auckland and Christchurch.

The liquidators last month obtained a High Court extension for the time in which to call and hold the meetings, saying the date had been chosen so all of the company's directors could attend.

Mr Anderson said he was perturbed by the decision to hold two meetings, and would be seeking an assurance from the liquidators that the meetings would be simulcast.

Insolvency expert Bernard Montgomerie, who had challenged the directors' appointment of the liquidators, was also disappointed with the report's lack of insight into the airline's demise.

"Creditors are owed a window into the liquidators' thinking. This report is very non-committal."

Mr Heath said a liquidation committee would be appointed by the meeting to assist the liquidators. It was "not practicable" to estimate the date of completion of the liquidation.

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