5 Jan 2005

Royal Tongan liquidator sells aircraft

4:18 pm on 5 January 2005

The liquidator for Royal Tongan Airlines has sold the company's Twin Otter aircraft for about US$830,000.

The liquidator PricewaterhouseCoopers didn't name the buyer in the transaction last month, but said it had worked with the New Zealand company, Airclaims.

The second aircraft, the Shorts SD-360 is being put up for sale by the secured creditor, General Electric Capital Corporation.

PricewaterhouseCoopers said it wasn't expecting any surplus from the sale of the second aircraft.

The sale of the hangar at Fuaamotu airport is still being negotiated.

Meanwhile the liquidator has received US$71,000 from the sale of assets in Nuku'alofa and US$8,000 from the auction of assets in Royal Tongan's offices in Auckland, Sydney and Nadi.

At the same time the liquidators have received claims for almost US$9 million, and they're now looking at paying the secured creditors first.