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No buyers for Bonza, administrators confirm

written by Jake Nelson | June 11, 2024

Bonza "Bazza"
Bonza’s second 737 MAX ‘Bazza’ awaiting the airline’s inaugural flight on the Sunshine Coast.

Bonza’s administrators say they did not receive any binding offers for the carrier before last week’s deadline, but are not yet winding up the company.

In a statement, Hall Chadwick confirmed all Bonza staff had been sacked and future flights cancelled. The administrator said it had guided “a number of interested parties through the sale campaign”, allowing them to conduct due diligence and formulate offers.

However, the administrator has confirmed that no binding offers were received prior to the deadline on Friday, 7 June.

“The future of the company is still to be determined as a third party may still put forward a Deed of Company Arrangement proposal for creditors’ consideration,” Hall Chadwick said.

“The administrators will provide an update to all creditors shortly and will look to convene the major meeting of the company in which creditors will decide the future of the company.

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“The administrators’ investigations into the company’s business and affairs are ongoing and the results of these investigations will be provided to creditors in the major report convening the major meeting.”

According to the ASIC website, a Deed of Company Arrangement (DOCA) aims to “maximise the chances of the company, or as much as possible of its business, continuing, and/or provide a better return for creditors than an immediate winding up of the company”.

“If creditors vote for a proposal that the company enter a DOCA, the company must sign the deed within 15 business days of the creditors’ meeting, unless the court allows a longer time. If this doesn’t happen, the company will automatically go into liquidation, with the voluntary administrator becoming the liquidator,” says ASIC.

The news comes despite Hall Chadwick successfully arguing in the Federal Court late last month for a two-month extension to its appointment period through the end of July, suggesting it was optimistic it could find a buyer for the stricken low-cost carrier.

Hall Chadwick had previously said it was speaking to around 20 interested parties, with six “very interested” in buying Bonza and its valuable AOC.

Bonza entered voluntary administration in April after all its planes were seized by lessor AIP Capital. The last of these leased 737 MAX 8s, VH-UJK, known as “Sheila”, left the country last week.

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