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Bonza’s administrator is seeking a two-month extension to its appointment as it continues to search for a buyer for the grounded low-cost airline.
Hall Chadwick has filed documents with the Federal Court asking to continue as administrator for Bonza until at least 29 July, with a second creditors’ meeting to be held prior to 5 August. The move comes as Bonza’s parent company 777 Partners indicates interest in restructuring the airline.
An extension of the administration would leave Bonza staff without pay for two more months, as they cannot claim certain benefits until the company is wound up, but would give the airline a better chance of ultimately finding a buyer and returning to the sky.
“[The] main purpose of the extension is to provide the administrators with further time to conduct a sale process for the companies’ business and assets,” Hall Chadwick said to Bonza creditors.
In the court documents seen by The Australian, Hall Chadwick noted Bonza’s most valuable asset is its air operator’s certificate (AOC).
The airline had leased all its planes, with all but one – VH-UJK ‘Sheila’ – now having left the country, and its AOC would risk being cancelled if the company is liquidated.
“Our understanding is that the AOC is not capable of being transferred to another entity and can only be used by the party granted the certificate,” Hall Chadwick said.
“Accordingly, we understand that the only way the AOC can be acquired by an interested party is if they were to acquire the shares in Bonza.”
In an affidavit, Hall Chadwick partner Brett Kijurina also told the court that Bonza’s owner, Miami-based investment firm 777 Partners, had signalled interest in proposing a deed of company arrangement (DOCA) to restructure Bonza and its Australian holding company, 777 Holdco. 777 Partners has not spoken publicly about the airline since it entered administration.
“The administrators have not yet received a proposal for a DOCA from 777 Partners,” the affidavit read.
Bonza has not flown since it entered voluntary administration at the end of April, with the airline to stay grounded through at least 29 May.
Hall Chadwick indicated earlier this month that it was speaking with around 20 interested parties, including investors, airlines and travel companies, with six “very interested”, though one potential buyer, Vietnamese low-cost carrier VietJet, has since walked away.
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says:So, we delay the process for two more months, do we have aircraft for the new startup, will the staff and crew be in place and certified for that event and will the travelling public have the confidence to purchase the product and will suppliers be available as required? – Toooo many questions and based upon 777 partners performance thus far that means more potential questions. Go see Scomo, he believes in miracles.