Origin Pacific winds up freight ops.

[Sqwark2004]

Origin Pacific to wind up

9.30am Friday September 15, 2006

Collapsed regional airline Origin Pacific said today it had failed to find a buyer for its freight business and was taking steps to wind the company up.

In a statement on its website, the company said it had attempted to find a buyer for its freight business, which had been trading profitably.

Several parties had checked the books and two had placed conditional offers, but the parties were not able to negotiate mutually satisfactory terms in the time available.

The Nelson-based airline closed its passenger services on August 10 after time ran out to find more than $5 million in capital to keep flying.

It had been struggling in its competition on the regional routes against Air New Zealand, since losing its partnership with Australian airline Qantas in 2004.

"The company is now taking advice on the appropriate steps towards winding up," it said in today's statement, adding it was unable to make further comment at this stage.

At the end of last month, the airline said it would resume charter services which had been profitable.

The freight business largely consisted of the rights to the cargo space on Qantas domestic Boeing 737 services and a nightly Qantas 767 freighter between Auckland and Christchurch.

- NZPA

Dosen't look good for holiday / redundancy pay.

[mattyj]

Good luck to all the Air Chats Guys and Girls..tough couple of months. Those of you still flying for Origin Freight that is..

[Bombay]

If the freight business is profitable, why the "limited time" to find a buyer? Surely there's no rush and furthermore, why wind up a "significantly profitable" business?

I smell a rat. His name is RI.

I am starting to think that the freight business is hanging from a thread too and that these potential investors realised this during their due diligence.

Shame on you Robert. :=

Bombay

[SURFS UP]

Correct me if I'm wrong but I thought that the freight business was run under a seperate company than the passenger business. If so, and if it is that simple, then maybe they would have kept going with their "profitable freight business".

The question is: Why didn't they?

1) Maybe legally the businesses are not fully seperate, or

2) Perhaps RI does have a conscience and was actually trying to do what he said i,e make some money from the sale of the freight business to pay the creditors of the passenger business.

If the passenger business is completely seperate from the freight, everyone knows that the same man is behind both companies so to continue with the freight business, in anyones books, would be stupid considering the amount of creditors that are owed money.

[turbolager]

You'd have to be pretty stupid to hang your company's supply chain on the performance of RI's circus. I can't imagine he had any customers left anyway.

Pure speculation but I'm sure any offer on the table would also have included clauses about proposed changes to senior management...

[troppo]

NZ Herald
Pero joins freight fray as Origin flys into sunset

Saturday September 16, 2006
By Helen Twose and Anne Gibson


As shareholder Mike Pero announced he would start his own freight business, regional airline Origin Pacific announced yesterday that the airline will be wound up after failing to sell its profitable freight division.

Pero had wanted to buy the freight division but said he had lost interest in the protracted negotiations and would instead start Pacific Express Airfreight.

Freightways - which had also wanted to buy Origin Pacific's freight arm - stepped in on Friday to offer services to Origin Pacific's clients and employment for staff.

Dean Bracewell, Freightways managing director, declined to discuss the failed sale of the freight arm.

"What we're currently doing is trying to provide continuity of employment for any staff that were associated with Origin in our own business and provide continuity of service for their customers," he said.

Bracewell said the arrangement was an "interim solution" for Origin customers and next week Freightways would confirm long-term plans.

"At the moment we're just concentrating on keeping people working and keeping customers' freight moving," he said.

Nelson-based Origin Pacific yesterday announced it had been grounded for good and is now taking advice on winding the company up.

The airline halted passenger services last month but had hoped to find a buyer for its freight service.

In a statement Origin Pacific said: "Several parties expressed interest and undertook a due diligence process, two parties placed conditional offers.

"The company was unable to negotiate mutually satisfactory terms and conditions in the time it had allowed for the process to be concluded."

Pero said he expected his new freight business would challenge existing players and grab a sizeable chunk of the market.

Companies Office records show Pacific Express Airfreight was registered in February 2004.

Pero is listed as its only director and sole shareholder

[Bombay]

Oh dear. Mr Pero has stars in his eyes again.

Good luck to him.

[rob1900]

If the freight business is so profitable - how come they owe QANTAS $600,000 (according to the newspapers)? We still have not heard what happened to ticket money that was supposed to be held in a trust account until the pax actually flew. RI is full of rhetoric, but very quiet on the lack of prudent management over the last few years - everyone else is to blame rather than Origin itself. Great editorial in the latest NZ Wings summarizing the Origin position.

QUOTE=SURFS UP;2850629]Correct me if I'm wrong but I thought that the freight business was run under a seperate company than the passenger business. If so, and if it is that simple, then maybe they would have kept going with their "profitable freight business".

The question is: Why didn't they?

1) Maybe legally the businesses are not fully seperate, or

2) Perhaps RI does have a conscience and was actually trying to do what he said i,e make some money from the sale of the freight business to pay the creditors of the passenger business.

If the passenger business is completely seperate from the freight, everyone knows that the same man is behind both companies so to continue with the freight business, in anyones books, would be stupid considering the amount of creditors that are owed money.[/QUOTE]