In a crucial development, the management of Australia-based low-cost airline Bonza has secured additional time to continue its search for potential buyers. The company, which stopped all flights on April 30, 2024, has been in voluntary administration under Hall Chadwick since then. At a recent hearing held in the Federal Court of Australia, Hall Chadwick requested an extension of their term of office, which was granted on May 27, 2024, extending their management period until July 29, 2024.
Impact on Employees
The sudden cessation of flights left approximately 300 former Bonza employees in a precarious situation. Since the airline did not officially lay off its employees, they have been unable to receive salaries or state aid. Hall Chadwick has emphasized their commitment to resolving this issue by aiming to sell the company and protect the employees' rights.
Bonza's Valuable Asset: The AOC
One of Bonza's most valuable assets is its Aviation Operating Certificate (AOC). Speaking on behalf of Hall Chadwick, lawyer James Hutton highlighted the importance of the AOC, stating that it would be canceled if the company were liquidated. "The sale of the company and the realization of the AOC's value has the potential to significantly improve the situation for creditors," Hutton said. He also noted that employees could receive further government benefits and potentially continue working at Bonza if the company is not liquidated.
Court Decision and Justification
Judge Ian Jackman approved the extension request, believing it to be in the best interest of the company's creditors. "The sale process the administrators are currently undertaking has the potential to deliver a significant return to creditors," Judge Jackman stated. He also mentioned that without the extension, liquidation would be the only remaining option.
The Future of Bonza
Bonza's operations were halted due to concerns about the financial health of its main investor, Miami-based 777 Partners. Following the company's entry into voluntary administration, its aircraft were moved for temporary storage in the United States. Hall Chadwick has been in discussions with approximately 20 potential investors, including airlines and other travel companies. Despite some, like Vietjet, withdrawing their interest, the search for a suitable buyer continues.
At the first creditors' meeting in Sydney, Hall Chadwick revealed that Bonza's debts amounted to over AUD 116 million (USD 77.2 million). These debts include amounts owed to aircraft lessees, anonymous creditors, landlords, trade creditors, and employees.
Community Support: "Bring Bonza Back" Campaign
In an effort to revive Bonza, various supporters and partners have launched an online campaign called "Bring Bonza Back." This campaign aims to keep public awareness of the airline alive while executives continue to seek investment.
The extension granted by the Federal Court of Australia provides a crucial window for Hall Chadwick to secure a buyer for Bonza, offering a glimmer of hope for its employees and creditors. As negotiations with potential investors progress, the future of Bonza remains uncertain but not without hope. Stay tuned for further updates on this developing story.
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