THE last chapter of the saga of former Tamworth-based regional airline company Tamair was written in Sydney yesterday morning
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A meeting of creditors, organised by leading business and insolvency solutions company Star Dean-Willcocks, was held at 32 Martin Place.
Only one creditor attended although a number of proxies were presented and it was decided not to fund any more money-chasing activities and instead, vary the company’s deed of arrangement which were drawn up on July 27, 1998.
The variation effectively halts any possibility of additional money being recovered from debtors, including the $700,000 owed by Impulse Airlines, possibly soon to be in the hands of Qantas.
By deciding to vary the deed, the only money held by Star Dean-Willcocks – a mere $15,000 — will go to former employees.
However, it will not go to them directly, but rather to their superannuation fund.
The meeting was presided by Nick Malanos of Star Dean-Willcocks, who said it was apparent there was insufficient money to pursue Impulse.
He had previously warned that because of this, he would be relying on obtaining litigation funding for any action.
But he further warned there was no guarantee that litigation funding would be forthcoming and similarly, no guarantee of the outcome of any proposed litigation.
As well, the cost of litigation funding could be expected to be up to 50 per cent of the net proceeds of a successful action.
Speaking after yesterday’s brief meeting, Mr Malanos said Tamair was “technically not in liquidation”, but would sit on the shelf in the forlorn hope that the Impulse debt would somehow be paid.
“It has no tax loss value,” he said.
Former Tamair chief Paul Bredereck said yesterday he was disappointed Impulse had not paid the money it clearly owed “but it now belongs to the past.”
He also pointed out that many ex-Tamair pilots were now flying with major national and international airlines.
“Tamair helped a lot of people over the years, he said.