The liquidator appointed to resolve Air Vanuatu's financial woes says the airline is set to come out of liquidation after the Supreme Court's approval of a creditor compromise.
Radio New Zealand reports that the Deed of Compromise passed with a vote of 306 to 18 in August but until now needed the final tick of approval from the courts.
The agreement, reached with the creditors of Air Vanuatu (Operations) Limited (In Liquidation) at a creditor meeting in August, was put forward by AV3 Ltd, and includes a US$3.3 million contribution fund to adjudicate creditor claims.
AV3 is wholly owned by the Vanuatu Ministry of Foreign Affairs was incorporated in June.
One creditor has previously told local media he fears creditors and employees will be left unpaid.
In a statement an Ernst & Young spokesperson said the ownership has been transferred to AV3.
Liquidator Morgan Kelly, partner in strategy & transactions at Ernst & Young Australia, said the execution of the Deed of Compromise is a positive outcome for the airline and its creditors.
“The implementation of the Deed of Compromise maximises the return to creditors and presents an opportunity for the Air Vanuatu business to continue, saving jobs and providing vital aviation services for Vanuatu”.
Kelly said the collaboration and assistance of the Vanuatu government and the Civil Aviation Authority Vanuatu have been instrumental in reaching this outcome.