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Spirit of Tasmania IV, pictured, has arrived in Tasmania and is due to enter operations in October 2026. (ABC News: Monty Jacka)<\/p>\n
The report stated that TT-Line could meet its short-term debts, but not for the long term.<\/p>\n
“I developed reasonable grounds to suspect that the company would not be able to meet its longer-term debts that fall due after the relevant period,” the report reads.<\/p>\n
“I issued my audit report on the financial statements of TT-Line on 19 August 2025. At that date, it was my opinion that TT-Line was insolvent, in that it had incurred debt that it did not have the ability to repay.”<\/p>\n
How Tasmania’s ferry operator made a multi-million-dollar mistake<\/a><\/p>\n From wharfless ferries to bungled design specifications costing millions, the troubled Spirit of Tasmania ship replacement project saga just keeps rolling on.<\/p>\n Over the past four years, TT-Line has gone from a $4.2 million underlying profit to a $24 million loss, while it provided no returns to the government in the past financial year.<\/p>\n Passenger numbers also declined by 4.9 per cent in the past financial year.<\/p>\n TT-Line is coming to the end of its scandal-plagued ferry replacement,<\/a> with both new vessels expected to start operating in October next year.<\/p>\n It has also undergone major changes in its board and management<\/a>, withdrawn its corporate plan, and is creating a new corporate plan, which it expects to provide to the government in the coming months.<\/p>\n It is yet to draw down on its $400 million increased debt capacity.<\/p>\n The company’s board disagreed with the auditor-general’s comment about “insolvency”.<\/p>\n Ken Kanofski refutes that TT-Line was insolvent. (ABC News: Monty Jacka)<\/p>\n Chair Ken Kanofski said the board “remains confident of its position”.<\/p>\n “TT-Line has already almost fully paid for the new ships and has more assets than liabilities,” he said.<\/p>\n “The directors and management, with the assistance of our specialist advisers, continue to work on developing a range of long-term financially sustainable options for the government to consider.”<\/p>\n Loading…Ferry operator’s finances questioned<\/p>\n TT-Line’s finances faced extensive scrutiny during a parliamentary hearing last month.<\/p>\n<\/p>\n