May 27th 2024.
The future of budget airline Bonza hangs in the balance as administrators have been granted a two-month window to find a buyer. This news comes as a relief to thousands of creditors who have been anxiously awaiting the outcome.
On May 15th, the first creditors' meeting was held, and it was decided that a second meeting would take place during this extended period. It was also revealed that the airline's license is likely its most valuable asset, which could potentially help secure a better outcome for creditors.
According to barrister James Hutton SC, representing the administrators, keeping the company out of liquidation would be the best course of action. If the company were to go into liquidation, it is uncertain if creditors would be able to recoup their full entitlements, including employee superannuation.
The news of a possible sale has sparked interest from various parties, as Bonza's parent company, 777 Partners, has shown interest in restructuring the airline. However, no formal proposal has been put forward yet.
Bonza, which primarily operates as a low-cost domestic airline, has faced financial troubles, resulting in the standing down of over 300 employees. The airline's air-operator certificate, which allows it to operate commercially, is seen as a valuable asset that could potentially be forfeited if the company goes into liquidation.
Despite the uncertainty, there is a glimmer of hope for customers with forward bookings. They have been classified as contingent creditors and may be able to retain their bookings if the airline continues to operate.
At the initial creditors' meeting, it was revealed that the airline has debts of over $100 million, including loans, trade creditors, and employee entitlements. The fate of these debts and the future of Bonza will be decided in the coming months.
In the meantime, customers can stay updated on the latest news and developments through the Bonza WhatsApp channel. This platform offers a direct line of communication without any algorithms or privacy concerns.
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