High noon for Tasman creditors

By DANIEL RIORDAN

Creditors opposed to Tasman Pacific Airline's shareholder-appointed liquidators are confident they have the numbers to appoint their own corporate undertaker at today's long-awaited showdown.

A group headed by valet parking company Base Care is looking to overturn the liquidators, who were appointed by Zazu, the sole shareholder of Tasman Pacific, which flew as Qantas NZ.

The airline shares five directors with Zazu.

The Base Care-led group needs the support of more than 50 per cent of creditors, by number and by size of debt, to appoint its own liquidator, Bernard Montgomerie, of Montgomerie & Associates.

Liquidator Jeff Meltzer, of Meltzer Mason Heath, has advised Zazu not to vote, despite Zazu being entitled to do so with the weight of the $15.8 million it is owed by Tasman Pacific.

Mr Meltzer said the Zazu loan was an old debt, dating from News Corp's ownership of Tasman Pacific's forerunner Ansett NZ.

Zazu repaid that loan to News Corp when it bought the business and took on the debt itself.

"If the creditors wish to confirm or overturn our appointment it should be up to the trade creditors to do that. I have suggested - and I know it will be confirmed and accepted - that they will not vote," said Mr Meltzer.

The airline owes unsecured creditors $130 million and has less than $3 million to pay them.

Mr Meltzer expects all the airline's directors to attend the meeting in Auckland.

Former chairman Ken Cowley is in London at a News Corp board meeting.

The meeting will be simulcast to creditors gathered in Christchurch, where many of the failed airline's employees and trade creditors are based.

Tomorrow, Tasman Pacific's directors will again be in the spotlight, with a date in the District Court at Auckland.

Seven past and current directors each face five charges relating to the company's failure to file its annual accounts on time.

They could be fined up to $500,000 each.

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