Word from those who attended the first creditors meeting on Thursday 7 th April,the books are not that bad if a Deed of Company Arrangement can be entered into with a buyer. Seems the issue was a shortage of working capital to hold three months trading of Vet Fee Help before the Feds pay.
Apparently the big creditors are the maintenance firm Rapair (circa $300k) BOQ (circa $400k) which is for operating equipment leases which would not have to be paid if trading resumes, Archerfield Airport Corp (circa $40k) and a line of credit/overdraft with the CBA.
Staff entitlements would not be an issue if trading is resumed with a new owner. Plus the usual number of small creditor a few grand here and there. So good buying for someone who wants a turn-key operation, minus of course the current senior management and Board of Directors who made some poor choices that led to the debacle.
Apparently the CBA head office knocked back an increase in the line of credit to cover the Vet Fee Help. Who can blame them after they took on bath on Arrium Steel at the Whyalla Steel Works at the same time.
Reminds me of the old adage: "The only way to make a small fortune in aviation is to start with a large one."
We don't make much money but we have a lot of fun!