SKYAIRWORLD: Management to take "Leave?

[broke it]

creditors administrator

Any one know how we go about getting an administrator?

[broke it]

velvet hammer

Carry on gloating!

The other company is doing fine with my F'ing money whilst I try to pay my debts unlike some good for nothing ex Capt of the Army carries on his lying and decietful ways.

My only hope velvet is you end up sharing a cell with this crook.

[ruidoso y fuerte]

páginas amarillas, pages of yellow - make certain that insolvency is speciality.

Intercompany loans and transactions, especially in lead up to cease of trade, will be very important!

bueno

[tail wheel]

Sage advice indeed, ruidoso y fuerte!

I only hope the ex SAW staff are listening and take your advice very seriously.

SkyAirWorld debts
COLLAPSED carrier SkyAirWorld owes creditors a whopping $40m, according to a report to be sent out today by the company’s administrators.

If those debts are valid and proven, it does not look good for staff and unsecured creditors.

To "sell" the AOC would require a Deed of Company Arrangement to relieve the AOC holding company of all debts, in order the company may be transferred with no liabilities. If that transaction resulted only in an additional dividend to secured creditors, why would staff and unsecured creditors support the proposal - unless those staff were guaranteed priority payment of entitlements?

Don't undervalue the price of a vote.........

Under the circumstances that secured creditor liabilities may exceed any proceeds from the liquidation of remaining asset, there is certainly merit and strong motivation in replacing the Director's appointed Administrator, with a creditors appointed Liquidator.

VelvetHammer. I'll go for strike 3: you're not suggesting the Administrator and/or creditors of the failed company should not exercise their right, or can not, or do not have the right to peruse any relationship between the failed company and any affiliated or associated companies are you?

[VelvetHammer]

Thats strike 3

Broke it,

Everyone is in the same boat with a lot of money missing.

It is a very sad and frustrating time.

Your attack is completely off line as you may find that the exact opposite is true regarding who took whose funds.

Hold your venom for the people who did this to you.

Don't waste the energy on the wrong parties.

And in this climate and with this cr#p going down there ain't nobody gloating.

Good luck next Wed.

[RNP10]

Velvet Idiot (Strike 3 your out)

So I wonder why SAC or whatever you want to call them dont have land lines that work or have any internet connection. Seems thier (our your) bills were not paid either.

Your sim pilots must be making a fortune for you while they are on (forced) leave for a month.

Dont worry, you keep believing all the false promises from above, and come and see us when you need a hand with your GEERS application

[VelvetHammer]

Tail wheel

Of course not.

The essence of the thread is correct but the wrong people are being attacked.

Keep focused on getting what is owed.

[tail wheel]

VelvetHammer. I'm not owned anything by SAW. I have no association with SAW. Not even quoting personal opinion, simply stating facts of liquidation.

However like most Australians, the loss of earned income and entitlements by ordinary Aussie workers, due to the irresponsibility of Directors trading a company into insolvency, quite frankly, appalls me.

The wrong people? The Directors and Officers are solely responsible.

Your attack is completely off line as you may find that the exact opposite is true regarding who took whose funds.

Everyone is in the same boat with a lot of money missing.

You infer that funds may have been improperly removed? A very interesting concept indeed.....

[Falling Leaf]

Creditors Meeting

I have just read through the administrators 'First Report to Creditors', and it makes sobering reading. From reading through the creditors and the amounts owing I can only guess that SAW paid no one over the past 6 months!! Does this qualify DJC as 'trading while insolvent'???

I am also concerned that out of the 140 staff affected by this, only about 20 have been represented in this forum or e-jets.org. Sadly, to date, they have spent more time blaming each other then co-ordinating a united front.

I am concerned that the fragmented, cut-off staff who are far too busy trying to put food on their own tables are now in no position to privide a united front, never mind have the expertise to secure their best interests by next Wednesday, including the appointment of another administrator!

For information, Creditors Meeting:

Room 3 of the Institute of Chartered Accountants
Level 32, 345 Queen Street, Brisbane
Wednesday 25 March, 2009, 10.00 am.

More communication please, ring those ex work mates and get them onto e-jets.org and get them involved. Anyone on the facebook site, please cut and paste this message there on my behalf.

[RNP10]

Well done Falling Leaf

I do believe as you have said, that there are allot of our ex-collegues who do not know what is going on, or have no idea of what to do.

What is the most effecient way of getting the word out? We need to pass this information about the creditors meeting on to everyone who has been screwed over.

[TBM-Legend]

so with 5 leased aircraft [gone], rented office, rented rotables, leased cars etc etc what are the assets that will cover $40 let alone $40M. The AOC is worth not much unless there are signifcant other bits attached..TB has an offer in I heard

[Falling Leaf]

What is the most effecient way of getting the word out? We need to pass this information about the creditors meeting on to everyone who has been screwed over.

Everyone who is a creditor (i.e. who has been screwed over) must receive by law the 'First Report to Creditors' from the administrator. In that report are all the details of the process, who is owed what, and where the meeting will take place.

I received mine in the post today, although I have still not yet received written notification of my termination...

[ruidoso y fuerte]

How to replace an administrator, Skulduggery and shadow directors

Voluntary administration

In a voluntary administration you are given an opportunity to replace an administrator at the first meeting of creditors, if there is another administrator who has consented to taking on the role and a majority of creditors (in number and value) approve the appointment of that replacement administrator. If you are a creditor, see ASIC’s information sheet INFO 74 Voluntary administration: a guide for creditors for more information about this meeting. http://www.asic.gov.au/asic/pdflib.n..._creditors.pdf

The purpose of the first meeting is for creditors to decide two questions:

1. whether they want to form a committee of creditors, and, if so, who will be on the committee, and
2. whether they want the existing voluntary administrator to be removed and replaced by a voluntary administrator of their choice.

When a poll is conducted, a resolution is passed if:

1. more than half the number of creditors who are voting (in person or by proxy) vote in favour of the resolution, and
2. those creditors who are owed more than half of the total debt owed to creditors at the meeting vote in favour of the resolution.

This is referred to as a ‘majority in number and value’. If a majority in both number and value is not reached under a poll (often referred to as a deadlock), the chairperson has a casting vote.

This meeting can be chaired by either the voluntary administrator or one of their senior staff.


Herein lies the problem.

The two “secured” creditors are the CEO and his father in law, they have the majority “weight’ of the debt. It must be tested how the CEO can claim 10 mill of debt to a company he drove and dispersed. The benefactor (20 odd mill) has also been calling the shots for many months and was well aware of cash and trading position.
Remember that a director is not simply the person who has his or her name so recorded at ASIC. The Corporations Act gives an expansive meaning to the word “director” to embrace not only those who have been properly appointed as directors but those who act as de facto and shadow directors

Who is a shadow director?
As a general rule, a person is a shadow director if that person, though not for*mally appointed a director of the com*pany, is one in accordance with whose instructions or wishes, the company’s other directors are accustomed to act. That is, the appointed directors effectively defer to the instructions of the shadow director.

Actions may be maintained against directors for the insolvent trading of their companies
l Actions may be brought against directors who obtained the benefit of unrea*sonable director-related transactions involving their companies
l The timeframe for recovery of pay*ments from transactions which have the character of unfair preferences and which benefit directors is greater than in the case of transactions with unrelated par*ties
l Recovery actions may be pursued against directors of companies which engaged in an insolvent transaction even though the transactions directly benefited other persons
l Actions will lie against directors for breach of their duties to their companies.

The problem:
So we have the “weight” of the vote sitting with the very two “directors”. How can the rest of the creditors, the genuine creditors, vote in a new Administrator?

Some legalese will be required before next Wednesday!

[yowieII]

Yeah I asked the bespectacled one about getting my termination etc through the mail,as the last months' correspondance had been going to a previous address. I could hear the ocean.......
Another thing to look out for......
Good luck and follow FL's advice and get onto E-Jets.org so that we can all get together and get our .0002 cents in the dollar

[tail wheel]

"It must be tested how the CEO can claim 10 mill of debt to a company he drove and dispersed. The benefactor (20 odd mill) has also been calling the shots for many months and was well aware of cash and trading position."

$2 paid up capital, the balance of the company working capital injected via Director's secured loans?

If that is the case, the company may well have traded from the beginning with a deficit of assets versus liabilities, in which case it should be possible to successfully challenge the validity of the Directors "loans"?

But not with a Director's appointed Administrator.

"...and get our .0002 cents in the dollar"

That may well be an optimistic assessment!

[TBM-Legend]

doesn't matter how funds are put in as long as there are enough. "loans" from shareholders are common however I would think that DC etc will have to pay back his "loans" to wherever he got them from???? Won't be easy when SAW has nothing to pay with. The arabs don't take prisoners...

[pianokeys]

Tail Wheel

Iam with you on this one

"However like most Australians, the loss of earned income and entitlements by ordinary Aussie workers, due to the irresponsibility of Directors trading a company into insolvency, quite frankly, appalls me."

I hope they can be brought before the court to answer for this.

PK

[wallabyblue]

Administrator Independence

seems Mr Lucas has had problems with ASIC in the past over issues of indpenedence see following:

Australian Securities and Investments Commission - 06-383 Brisbane liquidator disciplined

there are also related news stories form 2006 if you google them.

the issue willbe trying to find another administrator to take over when clearly there isn't much cash around.

also the charge taken out by Kenneth Roy Allen (from asic public records) needs to be challenged at the creditors meeting as a charge can only relate to new or prospective debts , not past debts.

the staff of SAW have every right to be outraged by SAW's actions.

my contacts tell me that some creditors were experiencing payment problems as early as last september year so DJC can't blame recent GFC issues for his spectacular and predictible demise.

[Rudder]

Wallabyblue

How it works is that if they can't recover the costs from the administration, they recover it from the courts. In effect underwritten by the taxpayer.

The bigger the mess they can make it, the more they can charge, the more they can recover irrepective.

It's a bit like putting the fox in charge of the chicken house!

[broke it]

Creditors meeting

Gazbiz is suggesting on the e-jets forum that we meet at the Tavern in the DFO near Brisbane airport Monday Evening. Any one got any other ideas, may DJC and FIL wont to join us as they are also creditors, poor things, I really feel sorry for these Guys, if they come down on Monday I will gladly give them everything I have to give.