Sad ...

Macao Dragon files for bankruptcy Budget ferry operator Macao Dragon Company is filing for bankruptcy. The company has stopped running services between Macau and Hong Kong from today. The ferry operator blamed the Macau government for its bankruptcy. Macao Dragon operated ferries with a 1,200 passenger capacity, but the Macau Maritime Administration allegedly imposed a cap on its capacity at 750 passengers from Hong Kong to Macau and 600 for the return trip. Macao Dragon Company was operating for only 14 months.

in Macau Business newsletter


http://www.hongkongextras.com/resources/_wsb_510x369_To%2BMacau%2B-%2BMacao%2BDragon.jpg

Do the other operators run on such caps as well? Seems a bit strange only the new guy has to abide by this capacity rule if that's the case.

Everybody does! The Uncle Stanley monopoly is sacred!
Bonis nocet qui malis parcit...

Mounting debt

People who bought tickets over the counter or traded their group-buying vouchers for tickets may have little choice but to claim compensation as ferry company creditors.
A meeting of the creditors of the company must be summoned within 28 days after the liquidation request.
The Maritime Administration (CP) confirmed that it spoke with company directors and demanded that the company refund the tickets.
According to a Deloitte press release, the provisional liquidators “will take control of the property of the company” and, as such, “the powers of the directors of the company have effectively ceased”.
The provisional liquidators have kept in touch with the CP, they confirmed.
The debts of Macao Dragon could reach over HKD 10 million, according to the company’s provisional liquidators, far above its total assets.
The liquidators said it could take up to two months to assess the value of the company’s assets, which they claim only comprise basic office equipment. The operator did not own the four catamarans it operated but leased them from sister companies, Deloitte added.

Macao Dragon’s major shareholder is local businessman Ng Fok, who has close connections with gaming tycoon Stanley Ho Hung Sun. Rival ferry operator Turbojet is part of his business empire.

Tougher rules

The estimated HKD 10 million includes HKD 1.5 million owed to company staff in salaries. Macao Dragon’s 150 workers will be given priority in meting out the company assets, said Derek Lai.
But a union representative told RTHK they were worried that former employees would not receive back pay, as the company’s debts far exceed its assets.
HKSAR media reported that the cash-strapped company owes the Hong Kong Marine Department HKD 1.8 million in berth fees and passenger embarkation fees.
CP is likely to revoke Macao Dragon’s operating licence and expropriate its deposit of MOP 2 million, director Susana Wong Soi Man concluded on Thursday.
Macao Dragon ceased operations and blamed a license delay and a passenger cap.
Susana Wong stressed the cap was based on passengers’ safety and the capacity of the Taipa temporary ferry terminal. The number of Macao Dragon passengers was well below the cap, she added.

The managing director of rival ferry operator Shun Tak, Pansy Ho Chiu King bemoaned Macao Dragon’s bankruptcy and called for tighter criteria for ferry concessions.
“Ultimately we notice that the Administration’s wish to open up the market – something we support – has brought inconvenience to passengers,” Ho said.

“I think in the long term the requirements for the concession of this service [ferry operations] must be revised according to public demand,” she said yesterday, quoted by Radio Macau.


in macaudailytimes.com

The was has just begin...Macao Dragon’s major shareholder is local businessman Ng Fok.

It is a sad day.

The cap is understandable when you see the shed that is used as a ferry terminal at Taipa, and the Macau Dragon vessels have a massive capacity, so it's no wonder the authorities had a cap in place.

Then of course there are the politics............

It will be interesting to see where the ferries end up.

Did construction ever start on the 3rd and 4th ferries?

Macao Dragon faces Gov’t lawsuit
http://www.macaudailytimes.com.mo/macau/29854-Macao-Dragon-faces-Govt-lawsuit.html

The Maritime Administration (CP) has confirmed it will file a lawsuit against ferry operator Macao Dragon for suspending services abruptly on September 15. An official notification was published yesterday in local newspapers.
“From September 15, 2011, Macao Dragon suspended or abandoned operations between the Taipa ferry terminal and Hong Kong, without authorisation. There is no evidence that Macao Dragon has abandoned or suspended operations due to reasons beyond its control,” the notification said.
The company’s behaviour was irresponsible, said CP director Susana Wong Soi Man.
The CP also started proceedings to revoke Macao Dragon’s operating licence and kept its deposit of MOP 2 million (USD 250,000).
Deloitte, provisional liquidators of the company, told Macau Daily Times that they have not received any correspondence about this legal action. The CP said it has already sent its staff to meet with Deloitte.
The Hong Kong police announced last Friday it had begun a fraud investigation into the sale of at least 150,000 tickets prior to Macao Dragon filing for liquidation.
Most tickets were sold through two group-buying websites, Groupon and BeeCrazy. The liquidator has already said that those passengers who bought tickets online would be refunded. However, 3,000 were sold over the counter and CP has demanded that the company refund all stranded passengers.
The liquidator said Macao Dragon’s debt could reach over HKD 10 million.
The budget ferry company started sailing between Taipa and Hong Kong in July 2010 but ceased operations last week and called in liquidators. They blamed the shutdown on licensing problems and caps on the number of passengers imposed by the Macau Government.
Wong Soi Man rejected the accusations and stressed that the cap was agreed with the Hong Kong Marine Department for safety reasons