41
Last hurrah T
Failed airline declared bankrupt in just two hours at subdued creditor’s conference, MOP1.14 billion owed
he conference of creditors was scheduled to last two days but less than a day was needed.
After only two hours, Viva Macau, which ceased operations in March, was offi cially declared bankrupt. The action now moves to the court where creditors who want their money back will need to make their claims. Some 106 people showed up for
the conference on September 13 at the Macau Forum, although there were around 1,900 creditors invited. The small turn-out included
Kevin Ho (MOP22 million). Speymill Macau, which
owns
AIA Tower, where Viva Macau’s of- fi ces were located also suffered a loss. According to Speymill, the low cost airline had 10 months of outstanding arrears in rent and service charges. “The occupied space is in the process of being repossessed and we expect to re-let this space in the second half of the year.”
Small creditors By August the Consumer Council had received 2,418 complaints from peo- ple affected by Viva Macau’s collapse, according to media reports. They in- clude passengers that were unable to fl y even though they had already paid for their tickets. The council advised these credi-
tors to approach the Court of First Instance directly or seek help from a lawyer. The council said it had no authority to act on their behalf in any legal proceedings. As for Viva Macau’s employees,
the Labour Affairs Bureau said it would make every effort to help them to get their unpaid salaries and sever- ance pay. It has declined to make any further comment because the case is now in court.
creditors identifi ed to the court by Viva Macau and those who had earlier pre- sented their claims directly to the court. The creditors at the conference hold 81.3 percent of the airline’s debt. According to the commercial
registry, Viva Macau’s debt amounts to around MOP1.14 billion. But the real fi gure is diffi cult to calculate since, for instance, this number excludes what may be owed to creditors that
were not on Viva Macau’s list and did not lodge their claims in court. The real number of creditors, according to a source that spoke to Macau Business may be more than 10,000. Bankruptcy was not the only out-
come possible for Viva Macau - at least, according to the law. The company could have tried to reach an agreement with its creditors to reduce or modify part or all of the debt. Viva Macau could also have asked for a moratorium, which postpones the deadline for repay- ing the debt.
The fi nal accounting However, what happened was a judicial declaration of bankruptcy. The decision was published in the Offi cial Gazette on September 15. From that date creditors that had not previously lodged their claims with the court (except Viva Macau employees) had 60 days to do so. After that the bankruptcy admin-
istrator will have to liquidate Viva Macau’s assets which, Macau Busi- ness has learnt, comprise nothing more than some chairs and offi ce equipment. The administrator must, by law, use the proceeds to fi rst pay the judicial expenses, then the employees and fi nally the creditors, who each receive a pro rata share of the remain- der - if there is any money left. During the creditors’
conference, it was stated that Viva Macau had a total debt of US$38 million (MOP304 million) last December, three months before ceasing to operate. By September 13, the day of the confer- ence, the fi gure had grown to MOP1.14 billion. Viva Macau got its
name from the Por- tuguese word “viva”, meaning “hurrah”. There is now little left of it to cheer about.
OCTOBER 2010
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