The first receivers’ report filed at the Companies Office states that long-established air freight company Airwork Group owes $145 million to its secured creditors.
The company collapsed in early July, leading to the appointment of Calibre Partners as receivers.
Airwork’s main troubles stemmed from Russia’s invasion of Ukraine, which caused the company to incur hundreds of millions of dollars in losses after five Boeing 757 freighter aircraft were seized and stranded in Russia. This forced the company to write off the value of the aircraft and become embroiled in ongoing legal disputes with its insurers.
The receivers also attributed the situation to difficult trading conditions, customer losses, and unsustainable debt levels.
The company is still operating under receivership, transporting air freight throughout New Zealand and Australia.
The receivers are attempting to sell the company’s assets that are not involved in its air freight operations.
In the first receivers’ report, Calibre Partners withheld the value of Airwork’s assets, citing commercial sensitivity while attempting to sell the company.
Airwork, one of New Zealand’s oldest aviation companies dating back to 1936, owns a fleet of Boeing 737 freighters and operates in air freight, maintenance, and aircraft leasing.
It was briefly publicly listed in 2013 before being taken private by Chinese firm Zhejiang Rifa Holdings in 2017.
In 2022, the company sold its helicopter operations and disposed of several surplus aircraft and engines in an effort to remain financially stable.
Airwork defaulted on a US$83.5 million (NZ$140 million) bank loan, leading the Bank of New Zealand, likely its largest creditor, to place the company into receivership.