Post by ferryfast admin on Sept 16, 2011 12:43:02 GMT -5
Gov’t rejects ferry operator accusations: Macao Dragon enters liquidation
16/09/2011 10:36:00
Tiago Azevedo and Amy Yang
Liquidators Deloitte Touche Tohmatsu will investigate whether Macao Dragon committed fraud before filing for bankruptcy, as the company recently sold about 150,000 tickets through group-purchase websites
Macao Dragon, a budget ferry service between Macau and Hong Kong, ceased operations late on Wednesday after a run of just 14 months and called in liquidators, blaming the shutdown on licensing problems. The Macau Government yesterday rejected the operator’s accusations.
While the company applied for a licence in 2006, Macau didn’t grant the permit until 2010, the company said.
“Despite receiving constant assurances from the Macau Government that our application for a licence was receiving favourable consideration and would be issued shortly, no licence was forthcoming until January 2010, when, after substantial costs had already been incurred [hiring staff and acquiring fast ferries], we were finally granted a licence to carry 1,152 passengers per vessel between Hong Kong and Macau,” Macao Dragon said in a statement.
When service commenced in July 2010, the Macau Maritime Administration “imposed an immediate cap on the number of passengers we could carry,” the company added.
The local authority capped the maximum number of passengers Macao Dragon could carry at 750 people from Hong Kong and 600 on the return journey.
Macau hadn’t yet fulfilled a promise to drop the caps, the ferry operator said, adding that its business became economically unfeasible. “They have not yet done so and we are now unable to run the business on a viable basis,” they said.
“The circumstances have made it impossible for us to continue operations.”
The company, one of the four ferry operators providing services between Macau and Hong Kong, was well known for its cheap fares. A one-way economy ticket from Hong Kong to Macau costs just HKD 88, and HKD 77 from Macau to Hong Kong, while it costs between HKD 130 and HKD 150 with other companies.
No promises
However, the head of the Maritime Administration, Susana Wong Soi Man, rejected the ferry operator’s accusations at a press conference yesterday.
According to Wong, the cap on passenger capacity was a decision made based on the safety of the passengers and the capacity of the Pac On temporary ferry terminal in Taipa.
The port authority director also said that no promise had been made to Macao Dragon about when the cap would be lifted, and denied that the company operation was being affected by these restrictions.
In a statement later in the day, the Maritime Administration disclosed that Macao Dragon had an average of 339 passengers on each sailing from Hong Kong to Macau, less than 50 percent of what they could carry.
From Macau to Hong Kong the average dropped to less than 30 percent, with outbound sailing taking an average of 186 passengers from the 600 permitted, the port authority said.
The Maritime Administration also confirmed yesterday that it has received the official notification from Macao Dragon, but said they were still trying to reach the company directors “before deciding on the next step”. The government said it would demand the company to refund the tickets.
According to maritime regulations, local authorities could revoke Macao Dragon’s operating licence and expropriate its deposit of MOP 2 million (USD 250,000), Susana Wong emphasised yesterday.
The largest ferry operator between Macau and Hong Kong is Shun Tak Holdings Ltd, controlled by the family of gambling tycoon Stanley Ho. Shun Tak last month purchased NWS Ltd’s ferry unit on the route for HKD 350 million (USD 45 million).
The third ferry operator is CotaiJet, controlled by Las Vegas billionaire Sheldon Adelson’s Sands China.
Asked if this situation would benefit the company controlled by local businesswoman Pansy Ho, since Shun Tak now owns two of the remaining three operators between both SARs, Susana Wong declined to comment. “This is not the right time to talk about that,” she said.
Hong Kong media yesterday reported that the cash-strapped company owes the Hong Kong Marine Department HKD 1.8 million in berth fees and passenger embarking fees.
Macao Dragon had a troubled start to its operations. Its first ferry in July last year damaged a bumper at the Pac On provisional terminal, causing a suspension of service. The ferry was not damaged and no one was hurt.
According to the Maritime Administration, there were four other incidents in October and November last year – three collisions against berthing facilities and one collision against another ferry at the pier.
No promise had been made to Macao Dragon about when the passenger cap would be lifted
Susana Wong
Fraud probe
The company’s directors appointed Derek Lai and Darach E Haughey of Deloitte Touche Tohmatsu as provisional liquidators.
“The provisional liquidators have the same powers and are subject to the same duties as liquidators in a creditors’ voluntary winding up, and, accordingly, the powers of the directors of the company have effectively ceased,” Deloitte said in a statement.
According to the liquidator, the collapsed ferry operator had around 150 employees, but the number of creditors is hard to estimate. “We are not sure at this stage as we are still collecting information,” a spokesperson told Macau Daily Times, admitting that “over 100,000 tickets had been sold on-line”.
“The provisional liquidators will hold office until a meeting of the creditors of the company is summoned, which will be within 28 days. In the interim, the provisional liquidators will take control of the property of the company.”
Deloitte will also investigate whether the company committed fraud before filing for bankruptcy, radio RTHK reported.
The company recently sold about 150,000 tickets through the online website, Groupon Hong Kong, an unknown amount on a similar site, BeeCrazy, and some 3,000 over the counter.
Deloitte says it won’t be known if buyers will receive refunds until it assesses the value of the firm’s assets.
Macau’s Consumer Council meanwhile said they had received 32 complaints until 5 pm yesterday, involving a total of 428 tickets worth MOP 24,000, mostly bought through Groupon Hong Kong and BeeCrazy.
In the statement, it was said the two group-purchase websites had agreed to refund buyers, but the head of the Consumer Council, Vong Kok Seng, again warned against the risk of pre-payment services.
According to Vong, there is no framework for pre-paid services in Macau, but authorities are considering what could be done in that respect.
Passengers stranded
Meanwhile, the Maritime Administration, along with other government bureaus, such as the Macau Government Tourist Office (MGTO), vowed to coordinate ferry operators to offer help to residents and visitors affected by Macao Dragon’s bankruptcy filing.
A few minutes after 9 am yesterday, there was a group of around 20 ticketed Macao Dragon passengers stranded at the Taipa terminal, but their situation was being handled.
Contingency measures had been launched and the other ferry operators were called on to help travellers.
“Last [Wednesday] night upon learning about the cessation of Macao Dragon’s passenger ferry service, we took several actions to be prepared this [yesterday] morning,” said MGTO director, João Manuel Costa Antunes.
“The number of passengers seems low and the other ferry service providers are prepared to provide additional capacity when needed,” he added. “The situation is quite smooth”.
Asked if this case could jeopardise the image of Macau as an international tourism destination – particularly after the failure last year of low-cost airline Viva Macau – Costa Antunes downplayed concerns.
“Macau is a destination that is rapidly developing and there are safety rules and management [policies] that must be met,” he said.
“If a service has to be halted because the operator does not meet the required quality standards, the image of the destination will be strengthened because it shows that the right regulations are in place,” said MGTO director.
In a statement yesterday, CotaiJet said it is accepting all ticketed Macao Dragon passengers until tomorrow, “for all travel between Hong Kong and Macau, in both directions of travel”.
“CotaiJet will honour Macao Dragon ferry tickets, as well as travel vouchers, for any and all passengers travelling now through Saturday, subject to availability,” they said.
16/09/2011 10:36:00
Tiago Azevedo and Amy Yang
Liquidators Deloitte Touche Tohmatsu will investigate whether Macao Dragon committed fraud before filing for bankruptcy, as the company recently sold about 150,000 tickets through group-purchase websites
Macao Dragon, a budget ferry service between Macau and Hong Kong, ceased operations late on Wednesday after a run of just 14 months and called in liquidators, blaming the shutdown on licensing problems. The Macau Government yesterday rejected the operator’s accusations.
While the company applied for a licence in 2006, Macau didn’t grant the permit until 2010, the company said.
“Despite receiving constant assurances from the Macau Government that our application for a licence was receiving favourable consideration and would be issued shortly, no licence was forthcoming until January 2010, when, after substantial costs had already been incurred [hiring staff and acquiring fast ferries], we were finally granted a licence to carry 1,152 passengers per vessel between Hong Kong and Macau,” Macao Dragon said in a statement.
When service commenced in July 2010, the Macau Maritime Administration “imposed an immediate cap on the number of passengers we could carry,” the company added.
The local authority capped the maximum number of passengers Macao Dragon could carry at 750 people from Hong Kong and 600 on the return journey.
Macau hadn’t yet fulfilled a promise to drop the caps, the ferry operator said, adding that its business became economically unfeasible. “They have not yet done so and we are now unable to run the business on a viable basis,” they said.
“The circumstances have made it impossible for us to continue operations.”
The company, one of the four ferry operators providing services between Macau and Hong Kong, was well known for its cheap fares. A one-way economy ticket from Hong Kong to Macau costs just HKD 88, and HKD 77 from Macau to Hong Kong, while it costs between HKD 130 and HKD 150 with other companies.
No promises
However, the head of the Maritime Administration, Susana Wong Soi Man, rejected the ferry operator’s accusations at a press conference yesterday.
According to Wong, the cap on passenger capacity was a decision made based on the safety of the passengers and the capacity of the Pac On temporary ferry terminal in Taipa.
The port authority director also said that no promise had been made to Macao Dragon about when the cap would be lifted, and denied that the company operation was being affected by these restrictions.
In a statement later in the day, the Maritime Administration disclosed that Macao Dragon had an average of 339 passengers on each sailing from Hong Kong to Macau, less than 50 percent of what they could carry.
From Macau to Hong Kong the average dropped to less than 30 percent, with outbound sailing taking an average of 186 passengers from the 600 permitted, the port authority said.
The Maritime Administration also confirmed yesterday that it has received the official notification from Macao Dragon, but said they were still trying to reach the company directors “before deciding on the next step”. The government said it would demand the company to refund the tickets.
According to maritime regulations, local authorities could revoke Macao Dragon’s operating licence and expropriate its deposit of MOP 2 million (USD 250,000), Susana Wong emphasised yesterday.
The largest ferry operator between Macau and Hong Kong is Shun Tak Holdings Ltd, controlled by the family of gambling tycoon Stanley Ho. Shun Tak last month purchased NWS Ltd’s ferry unit on the route for HKD 350 million (USD 45 million).
The third ferry operator is CotaiJet, controlled by Las Vegas billionaire Sheldon Adelson’s Sands China.
Asked if this situation would benefit the company controlled by local businesswoman Pansy Ho, since Shun Tak now owns two of the remaining three operators between both SARs, Susana Wong declined to comment. “This is not the right time to talk about that,” she said.
Hong Kong media yesterday reported that the cash-strapped company owes the Hong Kong Marine Department HKD 1.8 million in berth fees and passenger embarking fees.
Macao Dragon had a troubled start to its operations. Its first ferry in July last year damaged a bumper at the Pac On provisional terminal, causing a suspension of service. The ferry was not damaged and no one was hurt.
According to the Maritime Administration, there were four other incidents in October and November last year – three collisions against berthing facilities and one collision against another ferry at the pier.
No promise had been made to Macao Dragon about when the passenger cap would be lifted
Susana Wong
Fraud probe
The company’s directors appointed Derek Lai and Darach E Haughey of Deloitte Touche Tohmatsu as provisional liquidators.
“The provisional liquidators have the same powers and are subject to the same duties as liquidators in a creditors’ voluntary winding up, and, accordingly, the powers of the directors of the company have effectively ceased,” Deloitte said in a statement.
According to the liquidator, the collapsed ferry operator had around 150 employees, but the number of creditors is hard to estimate. “We are not sure at this stage as we are still collecting information,” a spokesperson told Macau Daily Times, admitting that “over 100,000 tickets had been sold on-line”.
“The provisional liquidators will hold office until a meeting of the creditors of the company is summoned, which will be within 28 days. In the interim, the provisional liquidators will take control of the property of the company.”
Deloitte will also investigate whether the company committed fraud before filing for bankruptcy, radio RTHK reported.
The company recently sold about 150,000 tickets through the online website, Groupon Hong Kong, an unknown amount on a similar site, BeeCrazy, and some 3,000 over the counter.
Deloitte says it won’t be known if buyers will receive refunds until it assesses the value of the firm’s assets.
Macau’s Consumer Council meanwhile said they had received 32 complaints until 5 pm yesterday, involving a total of 428 tickets worth MOP 24,000, mostly bought through Groupon Hong Kong and BeeCrazy.
In the statement, it was said the two group-purchase websites had agreed to refund buyers, but the head of the Consumer Council, Vong Kok Seng, again warned against the risk of pre-payment services.
According to Vong, there is no framework for pre-paid services in Macau, but authorities are considering what could be done in that respect.
Passengers stranded
Meanwhile, the Maritime Administration, along with other government bureaus, such as the Macau Government Tourist Office (MGTO), vowed to coordinate ferry operators to offer help to residents and visitors affected by Macao Dragon’s bankruptcy filing.
A few minutes after 9 am yesterday, there was a group of around 20 ticketed Macao Dragon passengers stranded at the Taipa terminal, but their situation was being handled.
Contingency measures had been launched and the other ferry operators were called on to help travellers.
“Last [Wednesday] night upon learning about the cessation of Macao Dragon’s passenger ferry service, we took several actions to be prepared this [yesterday] morning,” said MGTO director, João Manuel Costa Antunes.
“The number of passengers seems low and the other ferry service providers are prepared to provide additional capacity when needed,” he added. “The situation is quite smooth”.
Asked if this case could jeopardise the image of Macau as an international tourism destination – particularly after the failure last year of low-cost airline Viva Macau – Costa Antunes downplayed concerns.
“Macau is a destination that is rapidly developing and there are safety rules and management [policies] that must be met,” he said.
“If a service has to be halted because the operator does not meet the required quality standards, the image of the destination will be strengthened because it shows that the right regulations are in place,” said MGTO director.
In a statement yesterday, CotaiJet said it is accepting all ticketed Macao Dragon passengers until tomorrow, “for all travel between Hong Kong and Macau, in both directions of travel”.
“CotaiJet will honour Macao Dragon ferry tickets, as well as travel vouchers, for any and all passengers travelling now through Saturday, subject to availability,” they said.