Australian proposed startup carrier Koala Airlines is facing its biggest hurdle to date, as on Wednesday, January 22, 2025, representatives from the company will appear in the Supreme Court of the state of Victoria to face a winding-up petition filed by one of the carrier’s creditors. Failure to either appear at the hearing or to respond substantively to the petition could result in the nascent airline facing closure and being removed from the Australian Register of Active Companies.

The creditor, identified in court papers as Wealth Creation Ltd, lodged the application with the Australian Securities and Investments Commission (ASIC) against Koala Airlines Pty Ltd on December 20, 2024, with a hearing set for 14:15 local time on January 22, 2025. At the time of writing, the hearing is still scheduled to proceed as planned.

To defeat the petition, Koala Airlines would either have to reach a settlement with the applicant creditor either before (or possibly during) the hearing itself or persuade the court that it has sufficient funds available to settle the debt and continue to trade, at least in the short term. However, given that a month has already passed since the filing of the petition seemingly without resolution, then either outcome would appear to be unlikely at this stage.

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