Jetgo in a bit of trouble?

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chooms

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Paul Bredereck has had a long history in aviation but I think many ups & downs. I went to school with him. He had Tamair in the late 80's,
Found this on Bloomberg
Mr. Paul Bredereck serves as the Managing Director of Airlines at JETGO Australia Holdings Pty Ltd. Mr. Bredereck served as the Managing Director of Aviation Australia Pty Ltd. and served as its Chief Executive Officer until February 2011. He started his career as an aircraft apprentice and has been in the industry since 1977. This includes 23 years in managing and running regional airlines, training organisations and other aviation operations, of which 19 years is directly involved in aviation training. Mr. Bredereck has extensive experience in the ownership and management of regional airlines, aircraft engineering and flying training organisations, as well as regional airline operations in New South Wales, Victoria, Tasmania, Malaysia and South East Asia. He has been involved for over 15 years in government matters. He serves as a Director of Aviation Australia Pty Ltd. He is also a licensed aircraft maintenance engineer and airline transport pilots licence holder with over 7500 hours experience.
 
FRACK. My parents are booked on them to come down to Melbourne end of August. Apartment sitting while I have a jaunt around europe.
 
So, what are the chances of Dubbo Regional Council winning?
 
I would have thought those KTA-SIN flights would have been selling like hotcakes...
 
Looks like their expansion plans were a bit too ambitious after all.

I wonder if QantasLink (or another airline) will replace them on the WOL-BNE and WOL-MEL routes?
 
I wonder if QantasLink (or another airline) will replace them on the WOL-BNE and WOL-MEL routes?
Honestly don't think Qlink would have the available aircraft. All the 'spares' they had are now in NZ with Jetstar.
 
This is sad news. Another regional airline gone: Brindabella Airlines, Skytrans, Air Australia, Ansett, Vincent Aviation...and now Jetgo.

I will miss the OOL-Rok-TSV service, useful for visiting friends in North Queensland and avoiding BNE.
 
So, what are the chances of Dubbo Regional Council winning?

I'm a little bit late to this (and the appointment of a voluntary administrator changes things a little) - but the answer to your original question is this:

Dubbo Regional Council has served a statutory demand. This is essentially a form given by a creditor to a debtor to say 'pay us what you owe [which is set out in the form] or we'll liquidate you'. It's the nuclear option of debt collection - because it sets the clock ticking. A recipient of a statutory demand has 21 days to pay the amounts claimed or apply to the court to have it set aside. There are a number of criteria for having it set aside - but the one most often relied upon is that there is a genuine dispute about the requirement to pay the amount claimed in the statutory demand (i.e. we don't owe you what you say).

Failure to pay, or initiate setting aside proceedings by the 21st day after service means that the company is deemed to be insolvent and the creditor can file a petition for the appointment of a liquidator (which is what Dubbo has done).

Once this is filed (and assuming that there are no irregularities - which would really only be a monumental stuff up by the lawyers or the creditor blatantly telling lies), the creditor then has the debtor over a barrel.

Accordingly, companies in trouble who can't pay will sometimes file a setting aside application anyway - because it will buy them a little time (having the setting aside application dealt with will take a couple of weeks).

Once you haven't complied with the 21 day deadline, the only real way out of it for the creditor is to pay the full amount owed and 100% of the creditors legal fees in exchange for agreeing to have the winding up proceedings be dismissed with no order made.

The court hearing is just an administrative procedure for the appointment of a liquidator. There's no real scope for a creditor to argue against the appointment of a liquidator at the court hearing. As a creditor you'd also have to have a very compelling reason to get the hearing stood over for a week or two. It's been a long time since I appeared in the winding up list in the Federal/Supreme Court - but it's mostly lawyers for creditors standing up walking the Registrar through the evidence (i.e. saying we've filed all the forms and served them on the company and the company hasn't paid) and the Registrar then making the order for the appointment of a liquidator. It's very administrative. The debtors rarely even turn up.

Now that the directors have resolved to appoint a voluntary administrator this changes the procedure for the appointment of a liquidator described above a little - it basically puts it on hold. The voluntary administrators take control of the company for the benefit of the creditors. The voluntary administrators become personally liable for the debts of the company incurred from the time of their appointment (which is why the business generally stops operating immediately - to limit the debts incurred from the time of their appointment). If there are any secured creditors, they will no doubt appoint receivers in respect of the charged assets. Basically the pathway from here is usually 1 of 2 ways: 1) someone bobbing up with some cash and proposing a deed of company arrangement (in which case the company keeps operating (assuming the creditors vote for it)) or 2) liquidators are appointed and the assets are sold.
 
And once the Dubbo RC thing got announced I suspect forward bookings fell.

Forward bookings equals cash
 
I'm a little bit late to this (and the appointment of a voluntary administrator changes things a little) - but the answer to your original question is this:

Dubbo Regional Council has served a statutory demand. This is essentially a form given by a creditor to a debtor to say 'pay us what you owe [which is set out in the form] or we'll liquidate you'. It's the nuclear option of debt collection - because it sets the clock ticking. A recipient of a statutory demand has 21 days to pay the amounts claimed or apply to the court to have it set aside. There are a number of criteria for having it set aside - but the one most often relied upon is that there is a genuine dispute about the requirement to pay the amount claimed in the statutory demand (i.e. we don't owe you what you say).

Failure to pay, or initiate setting aside proceedings by the 21st day after service means that the company is deemed to be insolvent and the creditor can file a petition for the appointment of a liquidator (which is what Dubbo has done).

Once this is filed (and assuming that there are no irregularities - which would really only be a monumental stuff up by the lawyers or the creditor blatantly telling lies), the creditor then has the debtor over a barrel.

Accordingly, companies in trouble who can't pay will sometimes file a setting aside application anyway - because it will buy them a little time (having the setting aside application dealt with will take a couple of weeks).

Once you haven't complied with the 21 day deadline, the only real way out of it for the creditor is to pay the full amount owed and 100% of the creditors legal fees in exchange for agreeing to have the winding up proceedings be dismissed with no order made.

The court hearing is just an administrative procedure for the appointment of a liquidator. There's no real scope for a creditor to argue against the appointment of a liquidator at the court hearing. As a creditor you'd also have to have a very compelling reason to get the hearing stood over for a week or two. It's been a long time since I appeared in the winding up list in the Federal/Supreme Court - but it's mostly lawyers for creditors standing up walking the Registrar through the evidence (i.e. saying we've filed all the forms and served them on the company and the company hasn't paid) and the Registrar then making the order for the appointment of a liquidator. It's very administrative. The debtors rarely even turn up.

Now that the directors have resolved to appoint a voluntary administrator this changes the procedure for the appointment of a liquidator described above a little - it basically puts it on hold. The voluntary administrators take control of the company for the benefit of the creditors. The voluntary administrators become personally liable for the debts of the company incurred from the time of their appointment (which is why the business generally stops operating immediately - to limit the debts incurred from the time of their appointment). If there are any secured creditors, they will no doubt appoint receivers in respect of the charged assets. Basically the pathway from here is usually 1 of 2 ways: 1) someone bobbing up with some cash and proposing a deed of company arrangement (in which case the company keeps operating (assuming the creditors vote for it)) or 2) liquidators are appointed and the assets are sold.

The original story I heard publicly is that when Jetgo first came to Dubbo, they were offered a holiday for some airport fees for a period, - a not uncommon scenario. An argument developed over the terms of the holiday. Jetgo did not want to pay fees that they claimed were waived by Dubbo Council as an enticement to come to Dubbo. That seems odd, as the terms would be written down in black and white, and it is hard to see how they could be the subject of a dispute.

Anyway, by taking the drastic action they did (Dubbo Council) it would seem likely that the Council will not get its fees anyway. Everything would now be frozen, and Dubbo Council will not be the first cab off the rank in the order of who gets paid. On what has been published so far about this, Dubbo Council's action seems suicidal.
 
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The original story I heard publicly is that when Jetgo first came to Dubbo, they were offered a holiday for some airport fees for a period, - a not uncommon scenario. An argument developed over the terms of the holiday. Jetgo did not want to pay fees that they claimed were waived by Dubbo Council as an enticement to come to Dubbo. That seems odd, as the terms would be written down in black and white, and it is hard to see how they could be the subject of a dispute.

Anyway, by taking the drastic action they did (Dubbo Council) it would seem likely that the Council will not get its fees anyway. Everything would now be frozen, and Dubbo Council will not be the first cab off the rank in the order of who gets paid. On what has been published so far about this, Dubbo Council's action seems suicidal.


I agree with you. It's a big call for a regional council - one who is no doubt always on the look out for new air services for their airport (and not just for the landing/service fees but for the wider benefits for the community) to file proceedings for the appointment of a liquidator. They are just going to be an unsecured creditor and will get x cents in the dollar (x usually is often very round number)... filing the forms in the supreme court set the clock ticking for the time bomb. It's a very big call for a public authority to do. I'm not suggesting that it's the wrong call (they have ratepayers to look after) ... but it's a big call to file the papers and not trying to squeeze money out of them (whether in whole or part).
 
Didn't Rex have an argument with Dubbo council about security screening fees or some such?
 
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