Qantas NZ collapse leaves $100m in debts

By DANIEL RIORDAN, SCOTT INGLIS and JOSIE CLARKE

Failed airline Qantas NZ owes its creditors more than $100 million and most have little chance of getting their money back, say the company's receivers.

A handful of secured creditors - the Bank of New Zealand, Inland Revenue, the Customs service, Ansett Australia and 1100 former staff - will be paid $23.9 million owing.

The staff members will receive up to $6000 each in wages.

But hundreds of unsecured creditors, including businesses which supplied services and staff owed redundancy payments, will be left looking at a black hole.

The receivers' report into Tasman Pacific, which flew as Qantas NZ, said the collapsed airline had probably only $3 million with which to pay debts to unsecured creditors of more than $80 million - less than four cents in the dollar.

The BNZ, which appointed the receivers on April 21, would be paid within two months and Inland Revenue, Customs and staff owed wages would be paid within three weeks, the receivers said.

No one knows when the unsecured creditors will see their money, if they get any.

The receivers' report comes six weeks before a liquidator, appointed by the Zazu consortium of wealthy businessmen who were Tasman Pacific's sole shareholders, is to meet creditors on August 14.

Then the directors are expected to explain how the company traded its way into such a mess.

The businessmen appointed a liquidator on June 8, heading off attempts by groups of unsecured creditors to appoint their own.

Yesterday, businesses and former staff reacted with a mixture of shock at the scale of the debt and resignation that many are now unlikely to see any return for the services they provided.

The collapse has already cost Hamilton man Dave Turner and his family their business and home, and forced him to borrow money to help put food on the table.

Mr Turner and Malcolm Handley formed Logistix Services in 1996, to manage Qantas NZ's ground operations in Hamilton, Rotorua and Palmerston North.

The company employed 54 staff - all of whom lost their jobs when Qantas NZ folded.

Logistix sustained a crippling $115,000 loss, and Mr Turner went from company director to unemployed.

He had to sell his house, borrow several thousand dollars from family and cash in about $10,000 of insurance policies to buy food and pay bills.

"It was a good business," he said. "We had a good name. It was heartbreaking ... "

Yesterday, the former directors of Tasman Pacific said they "continue to feel concern for all who have been affected through the closure of the airline and particularly for the staff, who were totally committed to the business."

The largest unsecured creditor is Mobil, owed about $8.6 million. It said it was still exploring its options.

About half the 600 ground staff, baggage handlers, check-in staff, cleaners and engineers, who belonged to the Engineers Union, have found jobs.

Union national secretary Andrew Little said members would be paid up to $6000 in secured wages, but each was also owed between about $2000 and $15,000 in redundancy, plus holiday pay.

An Auckland baggage handler had saved up 10 weeks of holidays over 10 years for an overseas trip for his wedding anniversary. Those plans had been shattered.

The Airline Pilots Association is considering legal action over the collapse and did not want to say much yesterday.

President Keith Molloy said just over half of the union's 130 pilot members - owed about $5 million in wages and redundancy plus 7000 leave days - had found new jobs.

Pacific Flight Catering director Terry Hay said his company lost $1.3 million.

It had laid off 80 of its 230 staff and had to pay out a further $600,000 in redundancy.

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