The voluntary administration period for Sunshine Coast-based airline Bonza has been extended for another two months.
The Federal Court has granted Bonza administrators, Hall Chadwick, extra time to hold a second meeting of creditors.
The main purpose of the extension is to provide the Administrators with further time to conduct a sale of Bonza’s business and assets “which we believe is in the best interests of all creditors”.
Bonza employees remain stood down without pay and are unable to accept other work for the two months.
In a statement, Hall Chadwick said they understand how difficult and frustrating this time is for employees, however “we
continue to pursue the objective of a Voluntary Administration, which is to maximise the chances of the Company’s business continuing”.
“We accept that liquidating may immediately deliver a faster resolution for employees, but a sale would ensure a better outcome for all stakeholders, including employees,” the statement said.
The Administrators hope to be able to present Bonza staff with a clearer timeline and options in the near future.
Proposals from potential buyers will be put to Bonza creditors at the second meeting.
Hall Chadwick said Bonza’s US based owners, 777 Partners, informed them on May 21 the firm may wish to propose a deed of company arrangement to restructure the airline and its Australian holding company.
The Administrators have provided 777 Partners with further information.
A number of other interested parties have been permitted by the Administrators to access a data room to further conduct their due diligence with a view to providing binding offers.
Hall Chadwick said Bonza’s most key strategic asset is its air operators certificate which is at risk of being cancelled by the Civil Aviation Safety Authority if the company is liquidated.
The Administrators have until August 5 to hold the second meeting of creditors.
At this meeting several options could be considered, including the company executing a deed of company arrangement, ending the administration or winding the company up.
