In Reply to: Cant posted by Paradise on Monday, 15. May 2006 at 18:25 Bali Time:
AIR PARADISE UPDATE: 26 April 2006
for further information www.airparadise.com.au
PT Air Paradise International announces that the Company has been approached by a group of
potential investors interested in recapitalising the Company. It is anticipated that any recapitalisation
plan will involve the injection of funds into the Company and some form of cash and/or debt for equity
swap in favour of the Company's existing creditors.
Any recapitalisation plan is likely to require the approval of both creditors and a court of competent
jurisdiction. While no agreement has been reached with the potential investors to date, legal advice
has been obtained in relation to restructuring options under Australian and Indonesian law, and
negotiations are well progressed.
The potential investors, who wish to remain anonymous at this stage, have arranged for a formal audit
of the Company's finances to be undertaken in compliance with the standards applicable in Indonesia.
It is a precondition to further negotiations with the potential investors that the audit is completed. Once
complete, the audit will enable the potential investors to decide whether to commit to the proposed
recapitalisation and the terms on which they are prepared to fund the airline going forward.
We expect the audit to be completed within the next 21 days. The Company expects to make a further
announcement at that time. In the meantime, the Company will continue to monitor communications
that are addressed to the Company.
Further Information
All queries should be addressed by email to info@airparadise.com.au. The Company will respond to
general queries by updating the ‘Frequently Asked Questions' section of the company website.
www.airparadise.com.au
All additional information regarding the status of Air Paradise will be posted on the Company's
website. Travellers and creditors are advised to monitor the company's website for further information.
Will Air Paradise resume services?
Air Paradise is conducting an urgent assessment of the airline's financial position, and will be unable
to provide a definitive answer to this question until that assessment is complete. However, the airline
has no immediate plans to resume flights.