Twin Otter owner frustrated
August 24, 2024 3:29 am | Posted in Business News | Share now TwitterFacebook
By Kizzy Kalsakau & Anita Roberts.
Owner of the leased Twin Otter YJ-AV11, John Buchan, is frustrated for not being considered as a critical creditor of Air Vanuatu despite having a valid contract with Air Vanuatu Operations Limited (AVOL).
“Air Vanuatu came to me and requested that I purchased a Twin Otter aircraft, known as AV11, for them and for them to pay it off over a period of 10 years,” he said.
Buchan said AVOL has been paying off the aircraft from 2013 until a change of management occurred in 2020.
However, repayments resumed after Joseph Laloyer returned as the Chief Executive Officer (CEO) and a new arrangement was made.
“Now there’s a considerable amount of money owed on the aircraft, and the liquidators deny that Air Vanuatu owes me or my family further payments, even though I legally have the right to take possession of the aircraft and depose of it anyway I chose,” he stressed.
“I, as the holder of a lien over the aircraft legally secured the aircraft via a locked chain around the nose wheel together with a notice of advice however the liquidators, in an act of piracy, illegally removed my chain and threatened me for trespassing even though I was on the airport legally with my AVL security pass.”
Buchan is not happy about receiving only an estimated 5% of his debts owed.
He said the liquidators claimed he did not have a valid contract, but he does have a registered contract with the Vanuatu Financial Service Commission (VFSC).
Buchan said AVOL owes him approximately $1.5 million USD, or about $2 million AUD.
Asked about his next steps since he is not recognised as a critical creditor, he said he would have to take the liquidators to court.
“We have to go to court again to overturn the liquidators’ ruling,” he said.
“I believe even though we have consent orders stamped by the Vanuatu Supreme Court that the case is still open if those orders are not complied with. I hardly think the liquidators will overrule a court order as proof of a secured creditor.”
Buchan stressed that if this happens it could harm Vanuatu as a country and the airline might not secure leasing or finance again.
The AV11 owner, with extensive experience in the aviation industry, said the decision to put the airline into liquidator was premature and the government should have consulted with at least the major creditors about the matter.
The Daily Post could not get a response from the liquidators prior to print.
