Ernst & Young have stepped down as the liquidators of Air Vanuatu (NF, Port Vila) after court-imposed conditions were satisfied, according to an October 15, 2024, notice. This follows a creditor's vote in August to approve an entity called AV3 Limited buying the airline. AV3 is a special-purpose vehicle owned by Vanuatu's Ministry of Foreign Affairs.
State-owned Air Vanuatu suspended flights in early May due to high debt levels and ongoing operational issues. The government appointed Ernst & Young to the liquidator's role and tasked them with restructuring debts and selling the airline. The liquidators went on to accept almost USD129.4 million in creditor claims, including over USD111.5 million in unsecured claims. In August, after conducting a marketing campaign, Ernst & Young told creditors the purchase offer from AV3 was the preferred choice among the 11 expressions of interest received.
Under the subsequent deed of compromise, among other things, AV3 agreed to pay USD3.3 million into a fund to pay creditors in three tranches, the first USD1.1 million being payable on the day the creditors agreed to the compromise; the second USD1.1 million payable within four months of the creditors agreeing to the compromise; and the third USD1.1 million payable within ten months of the creditors agreeing to the compromise.
On October 2, Vanuatu's Supreme Court granted orders to terminate the airline's liquidation contingent upon a compromise fund account being set up per the terms of the September 3 deed of compromise; the buyer making the first payment of USD1.1 million, also set out in the deed of compromise; and the transfer of Air Vanuatu's shares to the buyer.
Ernst & Young say these conditions have been met and accordingly, the liquidation was terminated on October 11.
The airline's directors and management team have resumed control of Air Vanuatu's affairs and operations. As specified by the court, Ernst & Young will assume a compromise administrator role.
Recently, Air Vanuatu resumed limited domestic operations. ADS-B flight tracking data indicates the carrier's ATR72-600 is operating flights, as has one of the three DHC-6-300s. International fights remain suspended, in part because Air Vanuatu's sole jet was repossessed earlier this year.
In a separate notice, also issued on October 15, Ernst & Young say 306 creditors owed a total of USD99,716,546 voted in favour of the deed of compromise during the August 11 meeting, while 18 creditors owed USD3,946,093 voted against it.
