Bonza administrators navigate unprecedented creditor numbers
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The news: Bonza Airlines' administrators Hall Chadwick are tackling a number of creditors "without precedent" as the company prepares for a Friday meeting to vote on the company's future, lawyers for the administrators have told the Federal Court.
The context: In a hearing before Federal Court of Australia Judge Elizabeth Cheeseman, barrister James Hutton SC sought clearance for a virtual meeting, given "there may be upwards of 20,000 participants," from the 64,000 creditor pool and raised questions over how votes will be counted electronically, given a poll or virtual show of hands may not be possible.
Hutton said there would be a single deadline set at midnight Wednesday AEST for creditors to submit a proof of debt, appoint a compliant proxy and submit questions to allow the administrators to collate similar questions together.
Bonza cancelled all flights on 30 April, when the company entered voluntary administration.
The company's acceptance of real-time payments since November via fintech Monoova has created risks for customer's looking for refunds.
If a merchant cannot pay when it fails to deliver a product or service, customers can usually rely on reimbursement via the banks that issued their credit or debit cards used for payments, but direct payments lack an intermediary to be able to refund or replace a purchase.
The source: Federal Court of Australia
