Posted: Fri Oct 16, 2009 11:10 amhttp://www.stuff.co.nz/business/2969084/Av...-administration
Aviation firm glides into administration
By MARTA STEEMAN - The Press Last updated 05:00 16/10/2009
Christchurch's Flight Experience Group has been put in voluntary administration by its owners.
The firm, in which Mike Pero has been a leading promoter and shareholder, makes and sells flight simulators for pilot training and entertainment. It owes ASB Bank $4 million.
Chief executive Bill Highet said the company had suffered from the international downturn and the high dollar. It had been paying the interest required on the loan but has been unable to refinance it after it expired in February.
Three or four investors, mostly local parties, were interested in buying into the company and doing a deal with the bank. That would dilute the holdings of its present owners, about a dozen shareholders, with the single largest being local boutique investment bank and adviser Ocean Partners.
Highet said about $10m of equity had been invested in the company.
The company had 12 employees. Some had kept working as volunteers for the past month but were now looking for new jobs.
Flight Experience, formerly known as Pacific Simulators, designed, manufactured and exported flight simulators and sold franchises in New Zealand, Australia and Asia. The company sold six simulators in the past year.
Highet said an administrator was needed as a third party to sort out a restructuring. Voluntary administration allowed companies to restructure in an orderly manner.
If a new shareholder injected equity the company was likely to retract to just a small operation with a couple of key people, he said. Its focus would be to support the 11 franchisees operating around the world.
The company owed nine local suppliers about $200,000, he said.
Aviation firm glides into administration
By MARTA STEEMAN - The Press Last updated 05:00 16/10/2009
Christchurch's Flight Experience Group has been put in voluntary administration by its owners.
The firm, in which Mike Pero has been a leading promoter and shareholder, makes and sells flight simulators for pilot training and entertainment. It owes ASB Bank $4 million.
Chief executive Bill Highet said the company had suffered from the international downturn and the high dollar. It had been paying the interest required on the loan but has been unable to refinance it after it expired in February.
Three or four investors, mostly local parties, were interested in buying into the company and doing a deal with the bank. That would dilute the holdings of its present owners, about a dozen shareholders, with the single largest being local boutique investment bank and adviser Ocean Partners.
Highet said about $10m of equity had been invested in the company.
The company had 12 employees. Some had kept working as volunteers for the past month but were now looking for new jobs.
Flight Experience, formerly known as Pacific Simulators, designed, manufactured and exported flight simulators and sold franchises in New Zealand, Australia and Asia. The company sold six simulators in the past year.
Highet said an administrator was needed as a third party to sort out a restructuring. Voluntary administration allowed companies to restructure in an orderly manner.
If a new shareholder injected equity the company was likely to retract to just a small operation with a couple of key people, he said. Its focus would be to support the 11 franchisees operating around the world.
The company owed nine local suppliers about $200,000, he said.
here but I'd say dont write-off considering it without going into a branch and taking a squiz at the kit. If anyone's keen to hear more about it feel free to PM me.