Liquidation for Prosail as talks flounder

by Liliana Molina, Courier Mail on 23 Apr 2005 Queensland tour operator Prosail was put into liquidation yesterday after negotiations for a new owner failed to be completed before the scheduled second creditors' meeting.

The Airlie Beach-based charter boat operator collapsed earlier this year owing about 100 secured and unsecured creditors, including the Australian Taxation Office and Westpac more than $4.5 million.

Administrator, Giles Woodgate, of Woodgate and Co, said despite promising talks with two potential buyers, a deal had not been finalised before the scheduled creditors' meeting yesterday.

Prosail, started by former competitive sailor Simon Latchford, has continued to operate since being put into administration in February.

Mr Woodgate said a number of changes had been made to the running of the business, including taking its signature, but unprofitable, former America's Cup yachts off the water.

About 16 casual staff had been sacked and changes made to the tour programs.

Besides the ATO, other major creditors are Westpac and Mildura fruitgrower Phil Williamson's company Kurnong Matlock, which is a shareholder.

Mr Latchford, who claimed to have started the business with $14 in the company bank account, early last year proposed floating one of his companies, Chartercorp, to raise $5 million to buy prestige yachts.

While a prospectus was released in April last year, no further steps were taken.