Origin coffers 'bare' despite assurances

Failed airline Origin Pacific has virtually nothing left in a trust account to pay passengers owed $112,000, despite previous assurances by the company they would get their money back.

The Nelson Mail reported the airline's receiver was investigating the shortfall and at least one unnamed passenger was considering laying a complaint with police.

However, Origin's chief financial officer, Greg Rudings, has rejected any suggestion of wrongdoing by anyone from the company.

"There is certainly no misappropriation," he told the newspaper.

"What you have is one individual [founder and managing director Robert Inglis] who has sunk everything he has into the business and has done everything personally possible to protect the interests of the travellers."

When Origin Pacific ended its passenger service on August 10, Mr Inglis said a process was in place to protect prepaid fares.

Under a creditors' rescue deal in 2004, after Origin hit financial strife the first time, the airline was required to safeguard passenger money for travel in a trust fund.

Origin Pacific receiver Murray Allott, who was appointed by Mr Inglis and business partner Nicki Smith, said in a letter to passengers that his inquiries showed that from when he was appointed, on September 15, Origin's "Advance Reservations Trust Account" had a credit balance of $91.53.

But fares paid in advance by cash or cheque were about $112,000, Mr Allott said. Origin held no other credit bank account.

He said the passengers were unsecured creditors. He expected Origin creditors who were further up the priority list would not be paid in full, and if that turned out to be the case, unsecured creditors would not get any money back, he said.

Mr Allott said he was making further inquiries about the "apparent shortfall" in the trust account.

- NZPA