Vanuatu Government represented by the PM, 1,345,995 shares
Ernst and Young-Administrators/Liquidators.
Vanuatu Government - Majority Creditor (calculated assumption)
Creditors recorded: 662 (assuming that staff and unused tickets are listed as a collective creditor amounting to 1)
What we know so far:
Air Vanuatu as we knew it is gone. We are all aware that something needed to happen to end the nightmare as it has been. Unfortunately, it appears that the shareholders reaction to the problem was not measured, nor was it made with foresight and clarity. It was a knee jerk reaction to a claim against the Airline and the Government from Isleno that had already done the rounds in court both as a Civil and Criminal case. This had gone of for some 15 years. No need to go into details, suffice to say that the case was well and truly won by Isleno. Damages awarded etc… we must remember that this was for whatever reason between some politicians and others that resulted at this impasse.
As so often happens in our country, personalities get bigger than the issues they are dealing with. Conflict is allowed to move at erroneous speed like a wild fire, taking all in its path.
So, what is the issue, as in the real issue here and why are we the people suffering?
Simple terms, back street, petty politics being played out on the big stage to satisfy individual egos whilst using our money, the citizens of Vanuatu’s money, to fund their over embellished self-indulgent egos. That said, maybe we have that wrong, surely, we elected them, we have entrusted them to do the right thing on our behalf!! Surely, they would put the people first and never act in their own self-interests?
What’s next?
So now we know the real reason lets look at the lack of foresight and damage to the country and the people that is the actual cost, plus some for us to examine.
• the shareholders decided to enter Liquidation… to this day we are still not sure if its either a Voluntary Liquidation from the Shareholders asking the Board to do so, or, a creditors liquidation, of which ironically the Vanuatu Government is the single largest creditor, by way of cash injections, guarantees or loans, totaling say around 5.5 billion vatu. A noticeably considerable chunk of the 10.9 billion vatu debt. This doesn’t reflect the money thrown away by the previous Salwai government on the A-220 aircraft that had deposits paid for and no aircraft or re-negotiation to suit the environment.
• offers made to EY to end the liquidation- what we know
We understand several parties lodged interest of which we have been led to understand that approximately 3 are remaining for final acceptance by the Administrator. By end of August.
So what are some of the possible options available for EY to consider?
1.Total liquidation of all assets and the creditors paid by the Administrator, say 3-5 vatu per every 100 vatu of debt owed to the creditors(if they agree).
2.Take the domestic off the international and let the old company do a cents/dollar to satisfy the creditors. This option is more difficult than you can imagine, given that Air Operators Certificates (AOC) are non-transferrable from one entity to another. The usual safety and security issues apply. One can only hope that the CAAV doesn’t compromise itself for those individuals that put pecuniary interests In front of national interests.
3. 100% bailout. Pay all creditors registered in full [subject to being approved] retool the airline, do ground handling and code share, build domestic and then start wet lease for seasonal workers slowly and grow that sector while allowing Qantas, Jet Star and Virgin to grow the international market. (Obviously if supported and approved would be a easy solution, or maybe not given the damage done, but could be done under administration while establishing a new entity and preparing a new AOC for that entity to effectively have a white page)
4. Or, a mix as per the Administrator’s decision based on what’s best for the creditors.
What are our obligations either real, legal or both? We will use the collective “WE” as it is, after all ours not the Governments, just in case they have forgotten.
Legally we could normally walk away and no one can collect as you are protected under the companies act. Unfortunately, when you publicly declare that you are doing it to not pay an individual or company that arouses suspicions and perhaps will unlock some legal doors for the silks to walk through and start lodging claims against both individuals and the government as a whole. This is a very real possibility, particularly if you disenfranchise the wrong people and with 662 registered there is a fair chance 1 or 2 might get annoyed and that will start a class action coming after the Government and shareholders and Directors that’s effectively “US”,
The biggest loser internationally is our reputation, domestically, well we knew about the reputation so it is the lack of service and compromising peoples lives with a lack of clear direction and understanding of the importance of the air line and what it really meant to the country not just a select few that over the years thought it was their private airline.
Who to blame? US of course, its our fault we have not held them accountable we have allowed them to do as they please and feed us nonsense until now they are finally being held accountable. It is up to us to ensure that we do hold them accountable, they are costing us real money, money that can go to improved services for us, that will make our lives better and assist us to grow as a people and a nation.
Finally, should a State, any State be it Vanuatu or other, ignore its obligations and just put themselves into Administration/liquidation and forsake all those that are both loyal and complicit to them, and just let the entire country fall to its knees as one of its most critical infrastructure is reduced to rubble, leaving US with a reputation that is so badly in tatters? How can that possibly be acceptable by US and how can anyone justify this to be a nice way to end the day. Surely WE deserve better? They, our MPs have a duty of care to US and they are not respecting US, they still continue to travel and move about and squabble and fail to see the urgency and importance of this crisis and sit everyone down and fix it. Find a solution, swallow some pride and keep it real.
We deserve better, so now’s the time to give us better.
Anthony Lohane
Surunda, Santo East Coast
news@dailypost.vu
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