Post by skyhawkdon on Nov 20, 2009 9:33:52 GMT 12
www.stuff.co.nz/business/3080636/Simulator-firm-in-flight-once-more
Simulator firm in flight once more
By BEN HEATHER - The Dominion Post Last updated 05:00 20/11/
Flight simulator company Flight Experience will take off again after one of the company's founders bought it back from the receivers.
Russell Hubber and Iain Pero reclaimed Flight Experience Group's assets on Wednesday under a new company, Pacific Simulators 2010, and are planning for a new push into the United States.
Before it was put into receivership, Flight Experience was designing and building flight simulators, mostly as entertainment attractions.
It has sold 11 franchises, worth about $640,000 each, including five in New Zealand, four in Australia, one in Singapore and one in Hong Kong operating two simulators.
Last month the company was put into voluntary administration and two weeks later lender ASB Bank put it into receivership.
ASB was owed $4 million by Flight Experience but receiver Simon Thorn, of Grant Thornton, said money retrieved in the sale would not cover debt to the bank. It is understood Mr Pero and Mr Hubber paid about $400,000.
That would mean the bank would left with a significant shortfall, with other creditors and investors receiving no money.
Mr Hubber built the first simulator in his garage in Lincoln, outside Christchurch, during the 1990s. Mr Pero owns one of the simulator franchises in Sydney and is brother to Mike Pero, another big investor in Flight Experience.
Yesterday, Mr Hubber said it was a bittersweet day saying goodbye to $100,000 invested in the previous company while preparing for a better future.
"People have asked me why I'm getting back into it but I'm not hesitating in saying this company has a huge future," he said. Equipment and the five remaining staff were moving to a smaller manufacturing plant. "The US market is where we will be looking."
Mr Pero said he had bought into the firm to keep the support going for his franchise in Sydney. "Without the parent company we don't really have a business."
Mike Pero said he was glad Mr Hubber and his brother had taken control of the company but was not keen to invest again, having lost millions under the previous regime.
Simulator firm in flight once more
By BEN HEATHER - The Dominion Post Last updated 05:00 20/11/
Flight simulator company Flight Experience will take off again after one of the company's founders bought it back from the receivers.
Russell Hubber and Iain Pero reclaimed Flight Experience Group's assets on Wednesday under a new company, Pacific Simulators 2010, and are planning for a new push into the United States.
Before it was put into receivership, Flight Experience was designing and building flight simulators, mostly as entertainment attractions.
It has sold 11 franchises, worth about $640,000 each, including five in New Zealand, four in Australia, one in Singapore and one in Hong Kong operating two simulators.
Last month the company was put into voluntary administration and two weeks later lender ASB Bank put it into receivership.
ASB was owed $4 million by Flight Experience but receiver Simon Thorn, of Grant Thornton, said money retrieved in the sale would not cover debt to the bank. It is understood Mr Pero and Mr Hubber paid about $400,000.
That would mean the bank would left with a significant shortfall, with other creditors and investors receiving no money.
Mr Hubber built the first simulator in his garage in Lincoln, outside Christchurch, during the 1990s. Mr Pero owns one of the simulator franchises in Sydney and is brother to Mike Pero, another big investor in Flight Experience.
Yesterday, Mr Hubber said it was a bittersweet day saying goodbye to $100,000 invested in the previous company while preparing for a better future.
"People have asked me why I'm getting back into it but I'm not hesitating in saying this company has a huge future," he said. Equipment and the five remaining staff were moving to a smaller manufacturing plant. "The US market is where we will be looking."
Mr Pero said he had bought into the firm to keep the support going for his franchise in Sydney. "Without the parent company we don't really have a business."
Mike Pero said he was glad Mr Hubber and his brother had taken control of the company but was not keen to invest again, having lost millions under the previous regime.
. I had to buy a few trinkets on my way out as I could not resist it.