Failed airline asks creditors for more time

Failed regional airline Origin Pacific has asked its creditors to allow more time for possible buyers to look at the company's books.

Nelson-based Origin closed its passenger services this month after time ran out to find more capital to keep flying.

Origin managing director Robert Inglis yesterday told creditors that during the past two weeks Origin's freight operations had continued successfully, while the company determined the full extent of its creditor liabilities.

A number of interested parties had formally entered into due diligence of both the freight and passenger businesses, Mr Inglis said.

"This process is ongoing and we anticipate that our options will be better clarified in another two weeks when the parties may have made firm offers," he said.

"We are working hard to deliver an optimised outcome for all of our creditors in line with our preferred strategy.

"We continue to believe that should a receiver or liquidator be appointed that this may not be in your best interests.

"We have appreciated your support over the last two weeks in not taking any action that could jeopardise the restructuring and sale opportunities and would like to thank you again for this.

"We ask that this support is extended for another two weeks when we will be in a better position to evaluate our best options."

A further progress announcement would be made on September 11.

- NZPA