Tasman liquidates as creditors' axe poised

By DANIEL RIORDAN

Shareholders of Tasman Pacific Airlines (alias Qantas NZ) have placed the failed airline in liquidation, just days before creditors' applications to do the same and choose their own liquidators were due to be heard in the High Court.

The directors of Zazu, the holding company for the airline, late on Friday appointed Jeff Meltzer and Arron Heath, of Auckland insolvency firm Meltzer Mason Heath, as liquidators.

In a brief statement last night, Zazu directors said they had placed Tasman Pacific in liquidation "to bring some order to the process."

At least two petitions to liquidate Tasman Pacific Airlines were set for a High Court hearing on Thursday, led by valet parking company Basecare and Swedish-based inflight catering product provider DeSter.

Mr Heath said last night that those petitions would not proceed.

He said a meeting of creditors would be organised as soon as it was practical, but would not happen before the receivers - Michael Stiassny and Grant Graham of Ferrier Hodgson - delivered their first report, due on June 21, two months after the airline went into receivership. (However, the due date shown on Tasman Pacific's file at the Companies Office is July 2.)

Creditors will then be able to vote whether to retain the liquidators chosen by Zazu or replace them with a liquidator of their own choosing.

"We've got to prepare our own report based on the receivers. And their report reflects the position on the date of their appointment of two months ago. We would look to update that position to June 8," said Mr Heath.

"We will call a meeting at a time that everyone who wants to attend can attend." Tasman Pacific's directors have indicated they will attend.



Mr Heath said shareholders had planned to put the company into liquidation for some time, and that their timing so close to the court appearance was a coincidence.

Tasman Pacific collapsed almost two months ago owing creditors perhaps as much as $100 million.

Tasman Pacific's five directors are all directors of Zazu: Kevin Doddrell, David Belcher, David Skeggs, Fred Watson and Ian Farrant. Ken Cowley, who was Tasman Pacific's chairman but left the board a few weeks before the receivership, is the sixth Zazu director.

Mr Cowley's fellow Australian Ken Parker also resigned his directorship of both companies, as did Trevor Farmer, Alan Gibbs, Rob Campbell and Bryan Skeggs.

Mr Doddrell, Tasman Pacific's chief executive, joined the Zazu board two weeks ago.

Lawyers spoken to last week when word of what Zazu might do first broke, said it was unlikely a voluntary liquidation would bring any advantage to shareholders. Creditors would still be able to replace a liquidator they didn't want.

The only situation in which the chosen liquidator would be likely to remain would be where creditors individually were not owed enough to make it worth their while to take such action. But that is not the case with Tasman Pacific.

One would-be liquidator, Bernard Montgomerie, heading Basecare's action, was adamant that if shareholders chose their liquidator, creditors would be likely to oppose it.

Liquidators have greater powers than receivers, and in a liquidation creditors might be able to hold directors and shareholders personally accountable for their losses.

www.nzherald.co.nz/aviation

Air wars - the cast list

www.nzherald.co.nz/travel