Hazelton to enter deed of agreement
Creditors of Hazelton Airlines today unanimously voted to support a recommendation by the administrators to enter into a deed of company arrangement. According to the administrator, this type of arrangement is the best option for selling the airline whilst enabling it to continue to operate.
Other options included:
- Handing the airline back to the directors to run – which was seen to be inappropriate as many directors have resigned and remaining directors have failed to indicate an interest in running the airline.
- Liquidation – which was seen as costly and unlikely to return money to creditors.
There are currently two main buyers interested in Hazleton Airlines, but a sale is not expected until early 2002.
‘Hazelton creditors vote to place airline in holding pattern', ABC Online, 18/12/01.