EY Dismisses Allegations Amid Air Vanuatu Liquidation Concerns
September 10, 2024 4:13 am | Posted in Business News | Share now TwitterFacebook
By Doddy Morris
Ernst & Young (EY), the firm managing the liquidation of Air Vanuatu, has responded to allegations from Charles Perry, a former pilot and creditor, regarding the liquidation process of the national airline.
Perry recently raised concerns about what he described as a “morally bankrupt” strategy by the government and the liquidators, warning of possible legal consequences. He accused the liquidators of setting up a new company, a “phoenix company,” to remove liabilities from Air Vanuatu Operations Limited (AVOL) while leaving creditors and employees unpaid.
Perry noted that on July 18, EY registered a new company under the name “Air Vanuatu,” with Andrew Hanson, one of the liquidators, allegedly named as its director. Perry argued this move was intended to transfer ownership of the airline, leaving behind unpaid debts and obligations.
He also criticised the liquidators for operating under a government-issued assurance that allowed AVOL to continue as a “going concern,” despite its insolvency.
In response, EY has firmly denied these claims. The liquidators issued a statement denying Mr. Hanson’s involvement in the new Air Vanuatu company.
“Andrew Hanson is not the director of Air Vanuatu,” EY said. “The liquidators are working towards a better outcome for creditors and employees, as set out in the deed of compromise.”
Perry also expressed dissatisfaction with the transparency of the process during the creditors’ meeting, claiming EY avoided direct questions about audit reports and the government’s assurances
However, EY maintains they provided “clear and concise answers” to creditors, and the approval of the deed of compromise, which passed with a majority vote of 306 to 18, reflects their efforts.
Despite Perry’s warnings of a “tidal wave of lawsuits” from affected parties seeking legal recourse, EY stands by its position that the liquidation process is being carried out legally and in the best interests of creditors and employees.
As the liquidation of Air Vanuatu continues, attention remains on how the government and EY will handle these issues, particularly with potential legal challenges on the horizon.
