Creditors vote for Bonza to be wound up

BTN News
Wednesday, 03 July 2024

Creditors of failed Australian startup carrier Bonza this week voted to liquidate the airline.


Administrator Hall Chadwick has suggested the low-cost carrier may have traded while insolvent and that creditors (who have lodged claims for about A$165 million) 'may end up with nothing' after Bonza accrued losses exceeding A$133 million since its foundation in September 2021. 

Hall Chadwick also said Bonza may have had significant solvency and operational concerns from November 30, 2023, and may have been insolvent from March 1, 2024 until the date of its administration. 

Directors of Australian companies that trade while insolvent can face civil and criminal charges.

The administrator said there were four reasons for Bonza's failure: Ongoing trading losses, strategic management failures, strains on existing cash flow and inadequate financial modelling.

Bonza's 323 employees now can apply for payment of unpaid salaries via the Australian government's Fair Entitlements Guarantee, a scheme of last resort that provides financial assistance for unpaid employee entitlements in instances of insolvency. 

Most employees have not been paid since March.

Creditors vote for Bonza to be wound up

BTN News
Wednesday, 03 July 2024

Creditors of failed Australian startup carrier Bonza this week voted to liquidate the airline.


Administrator Hall Chadwick has suggested the low-cost carrier may have traded while insolvent and that creditors (who have lodged claims for about A$165 million) 'may end up with nothing' after Bonza accrued losses exceeding A$133 million since its foundation in September 2021. 

Hall Chadwick also said Bonza may have had significant solvency and operational concerns from November 30, 2023, and may have been insolvent from March 1, 2024 until the date of its administration. 

Directors of Australian companies that trade while insolvent can face civil and criminal charges.

The administrator said there were four reasons for Bonza's failure: Ongoing trading losses, strategic management failures, strains on existing cash flow and inadequate financial modelling.

Bonza's 323 employees now can apply for payment of unpaid salaries via the Australian government's Fair Entitlements Guarantee, a scheme of last resort that provides financial assistance for unpaid employee entitlements in instances of insolvency. 

Most employees have not been paid since March.