Waikato Herald
  • Waikato Herald home
  • Latest news
  • Sport
  • Business
  • Rural
  • Lifestyle
  • Lotto results

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • On The Up
  • Sport
  • Business
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
  • Lifestyle
  • Lotto results

Locations

  • Hamilton
  • Coromandel & Hauraki
  • Matamata & Piako
  • Cambridge
  • Te Awamutu
  • Tokoroa & South Waikato
  • Taupō & Tūrangi

Weather

  • Thames
  • Hamilton
  • Tokoroa
  • Taumarunui
  • Taupō

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • What the Actual
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Waikato News

Pacific Aerospace assets bought by New Zealanders with a love of flying

By Andrea Fox
Herald business writer·NZ Herald·
27 Apr, 2021 08:32 PM4 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

    Reminder, this is a Premium article and requires a subscription to read.

Pacific Aerospace's XSTOL P-750 is popular globally with skydive operators. Photo / Supplied

Pacific Aerospace's XSTOL P-750 is popular globally with skydive operators. Photo / Supplied

The assets of insolvent iconic planemaker Pacific Aerospace have been sold to two North Island business people with a strong interest in aviation.

Neil Young and Dee Bond, owners of the Mercer airfield and Mercer businesses, the Tuakau Hotel, and other properties confirmed to the Herald they were the purchasers of the Hamilton-based light aircraft designer and manufacturer which was put into liquidation in March.

Young said they wanted to "wait until the dust settles" to discuss the operation's future.

Pacific Aerospace employed 93 people, many highly skilled veterans of the aircraft exporter when it was put into liquidation.

Young said he was reluctant to "create any false promises" but could see no reason the company shouldn't be rebuilt.

Advertisement
Advertise with NZME.

Bond is an accountant and a veteran pilot, the only female captain in the world of an amphibious Catalina aircraft.

Young, also a pilot, said a chief executive had been appointed but declined to name them.

Liquidators KhovJones said the sale meant the business would remain in New Zealand with local staff to be offered employment.

Advertisement
Advertise with NZME.

Stephen Khov declined to say if liquidators had received a higher offer than that of Bond and Young.

Pacific Aerospace, whose origins date back to 1939 at its site beside Hamilton airport, owed creditors at least $42 million, according to the liquidators' recent first report.

Secured creditors were owed $1.67 million and unsecured creditors $41.2m. Among unsecured creditors, $35m was owed to related parties, and $5.6m to third parties.

The liquidators hoped the sale would allow for distribution to staff for their preferential claim. They were uncertain at this stage whether there would be residual funds to enable a distribution to unsecured creditors.

The amount owing to total preferential creditors, including staff, had yet to be determined, and the value of the company's total assets had yet to be disclosed, the first report said.

Preferential claims from employees for unpaid wages and holiday pay to February 10 were assessed to total $814,684, but assessments were continuing of staff entitlements to March 8 and redundancy claims.

On March 8 when liquidators were appointed, funds available to the company were $37,641.

The company was 50 per cent owned by Chinese company BAIC International (Hong Kong), a subsidiary of China state-owned giant Beijing Automotive, and 50 per cent by New Zealand shareholders of Pacific Aerospace Group.

Advertisement
Advertise with NZME.

Liquidation was sought by a US supplier creditor.

The company owed its landlord Waikato Regional Airport lease arrears of $222,239.

At least 400 aircraft produced by the company are operating globally, according to Herald sources, and its aircraft form the backbone of New Zealand's agricultural aviation fleet.

As the report notes, the company is currently the only supplier of certified replacement parts for any of its aircraft.

The liquidators had engaged with customers, mainly based overseas, that either had unfinished aircraft builds or had paid deposits for builds yet to start, the report said. A review of work in progress and finished inventory had been undertaken. The report shows prepaid customers are owed $413,089.

Last month, New Zealand operators of Pacific Aerospace-made aircraft expressed concern they would be grounded because they could not access parts and maintenance. The CAA confirmed to the Herald those concerns aren't limited to rural topdressing and spraying operators. Skydiving operations that had bought the company's popular XSTOL P-750 aircraft might also feel the effects as the liquidation continues, the authority said.

At the interim liquidation stage, KhovJones had sought funding from both shareholder groups.

Both declined, the first report said.

Subsequently in full liquidation, a proposal was discussed to recapitalise the business and terminate the liquidation.

"Unfortunately, no satisfactory progress has been made in this regard at the time of this report."

There had been "reasonable" recovery from local debtors.

Save

    Share this article

    Reminder, this is a Premium article and requires a subscription to read.

Latest from Waikato News

Waikato Herald

Four-vehicle crash on SH29 injures six, road now reopened

08 May 08:53 PM
Waikato Herald

'Significant win': New Homegrown host city confident in pulling it off

08 May 06:00 PM
Waikato Herald

'Sense of injustice': Act minister, National MPs to face protests over pay equity changes

08 May 06:28 AM

One tiny baby’s fight to survive

sponsored
Advertisement
Advertise with NZME.

Latest from Waikato News

Four-vehicle crash on SH29 injures six, road now reopened
Waikato Herald

Four-vehicle crash on SH29 injures six, road now reopened

08 May 08:53 PM

Six people were treated, with one in serious condition at Tauranga Hospital.

'Significant win': New Homegrown host city confident in pulling it off
Waikato Herald

'Significant win': New Homegrown host city confident in pulling it off

08 May 06:00 PM
'Sense of injustice': Act minister, National MPs to face protests over pay equity changes
Waikato Herald

'Sense of injustice': Act minister, National MPs to face protests over pay equity changes

08 May 06:28 AM
'Like a Band-Aid': Methanex deal highlights energy supply challenges

'Like a Band-Aid': Methanex deal highlights energy supply challenges

08 May 05:44 AM
Connected workers are safer workers 
sponsored

Connected workers are safer workers 

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • Waikato Herald e-edition
  • Manage your print subscription
  • Manage your digital subscription
  • Subscribe to Herald Premium
  • Subscribe to the NZ Herald newspaper
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • Waikato Herald
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • What the Actual
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven CarGuide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP