Creditors move to stop Nationwide Air winding-up

Press, 7 December 1978, Page 4

Creditors move to stop Nationwide Air winding-up

In a surprise last-minute! move a group of companies! alleged to be creditors of! Nationwide Air, Ltd, opposed the petition to wind up that company in the Supreme Court yesterday. Mr Justice Somers adjourned the petition for one

ijweek to December 13 and! > ordered that Nationwide Air ’! serve on the petitioning I creditor and those creditors . appearing in support of the 1 petition, copies of the proposed scheme to settle the . company’s debts. I When the case was called Mr J. G. Fogarty, who appeared for the petitioning creditor, Eagle Airways, Ltd, of Hamilton, said he wasi ready to proceed and that a director of his client company had flown to Christchurch to give evidence. The petition to wind up Nationwide Air. a company running an air car-ferry service between the North and South islands, was supported by Truck and Maintenance and Services, Ltd, of Wanganui, represented by Mr P. F. Whiteside; Bob Jones and Company, Mr S. L. Kaminski; and the District Commissioner of Inland Revenue, Mr G. K. Pankhurst. Mr B. J. Scott, for Nationwide Air, said that he opposed tlte petition and sought its adjournment until a meeting of the company’s creditors was held. A motion seeking a meeting of the unsecured creditors under the provisions of the Companies Act had been filed that morning and the provisional date for that meeting was December 21. He asked that the petition be adjourned un-l til after the meeting. Mr Scott said that he also appeared for the following creditors of Nationwide Air which opposed the petition? Norak Aviation Engineering,! Ltd, Nationwide Akarana, Ltd, Haulaways Corporation, I

| Ltd, Rural Management, Ltd, International Homes, Ltd, New Zealand Land Development Company, Ltd, Boulder Consolidated, Ltd, and Mr J. G. Rutherford. In reply to a question by his Honour Mr Scott said that he had not given notice in accordance with the rules to the petitioning creditor and the creditors who supported the petition. Mr Fogarty said that no notices had been received in opposition to the windingup petition although there had been some discussions between the petitioning creditor and Nationwide Air. His instructions had been to proceed with the application to have the company wound up. His Honour said that he was unable to judge the merit of the application for the adjournment made by the creditors opposing the wind-ing-up order until he knew the amount they were owed by Nationwide Air. He also noted that no notice of the scheme for the payment of debts by Nationwide Air had been filed for the consideration by creditors. An undertaking was given by Mr Scott that the scheme would be prepared and served on creditors no later than Friday. An order winding up Beatties Fabrics (Christchurch), Ltd, was made on the application of Blair and Kent, Ltd, of Auckland, after it had proved an unpaid debt of $l7lB for textiles supplied in 1976. Mr K. Lord appeared for the petitioning creditor.