Failed Air Australia will be liquidated, after the airline’s creditors voted to wind up the company at a meeting in Brisbane today.
Administrator Mark Mentha of Korda Mentha said the airline’s 350 staff would get most of their entitlements paid out under the federal government’s General Employee Entitlements and Redundancy Scheme (GEERS) but other creditors will be significantly out of pocket.
“Basically GEERS will pay the employees $5 million, employees won’t be paid $3 million and then there are $75 million of creditors left, so the total losses are about $85 million,” he said, according to ABC News.
Air Australia suspended flights on February 17.
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