Creditor Claims Government Involved in Air Vanuatu's Liquidation

Charles Perry, a former pilot and creditor of Air Vanuatu, has raised serious concerns about the recent developments surrounding the liquidation of the national airline.

Perry’s statement criticises what he describes as a “morally bankrupt” strategy employed by the government and the liquidators, which he believes could lead to major legal repercussions.

On July 18, Perry noted, Ernst & Young (EY), the firm overseeing the liquidation process, incorporated a new company under the name “Air Vanuatu.” Andrew Hanson, one of the liquidators, is allegedly the director of this newly formed entity. Perry argues that this move is part of a scheme to transfer ownership of Air Vanuatu Operations Limited (AVOL) while leaving creditors and employees unpaid.

“Well, it allows the government to do what is called a phoenix—morally bankrupt and potentially illegal,” Perry stated. He criticised the liquidators for creating the new Air Vanuatu company, alleging their intent to strip the original airline of its liabilities and debts, despite a government-issued written assurance guaranteeing payment of all liabilities.

“This written assurance allowed them to continue operating AVOL as a ‘going concern’ despite its insolvency, as per the iCount audit reports,” Perry continued. “The ‘new’ Air Vanuatu domestic operation will arise, phoenix-like, from the ashes of the old—debt-free.”

Perry also expressed frustration over the lack of transparency during the creditors’ meeting. He mentioned that when he and other creditors questioned EY about the audit reports and the government’s written assurance, the liquidators “seemed most uncomfortable and essentially fobbed us off with non-answers.”

The most recent development in this ongoing saga is the approval of a deed of compromise, which passed with a vote of 306 to 18. The dissenters included all the Boeing pilots and a handful of local businesspeople and creditors. Perry disclosed that one of the opposing creditors, a well-known figure in Vanuatu, contacted him after the meeting. Another was a tourist who reached out before the meeting to express gratitude for the coverage provided by the Daily Post.

Perry cautioned that the government’s actions could result in “a tidal wave of lawsuits” as affected parties seek legal recourse for what they perceive as an unfair and potentially illegal process.

Some government officials have been contacted for comments but have yet to respond.

doddy@dailypost.vu

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