Probe begins on JetGo loss
An investigation into the collapse of JetGo is expected to report to creditors within three months how much money, if any, will be able to be repaid.
Liquidator Jirsch Sutherland is undertaking the probe, which will look into consumable assets such as fuel and “rotable” assets such as propellers which can be realised.
Westpac, the largest secured creditor, is owed about $13 million and employees are owed an estimated $2.4 million, which is expected to be paid in the next few months.
Unsecured creditors, such as the City of Karratha, are owed an estimated $34 million.
A report prepared by administrators McLeod and Partners ahead of the liquidator being appointed was critical of some of the financial reporting of the company in 2016-17 and 2017-18.
As of May 31, 2018, net assets were claimed to be about $6.4 million with a working capital ratio of 0.547.
“We note that the company’s trading income for the financial years ended 2017 and 2018 were substantially less compared to financial year 2016,” the report said.
“We also note that the company’s working capital ratio was consistently below one for the financial years 2016 and the period 1 July 2017 to 31 May 2018.”
JetGo director Jason Ryder claimed the financial difficulties could be attributed to the collapse of the aviation industry in 2000, under-capitalisation and loss of contracts.
The administrators said it appeared to be attributable to cash flow management issues, an inability to generate sufficient cash flow to pay debts and failed investments.
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