Former Ansett workers settle payments dispute
ABC News Online
Last Update: Friday, November 21, 2003. 11:07am (AEDT)
Former Ansett workers settle payments dispute
An in-principle agreement has been reached to settle entitlements due to former Ansett employees.
A statement just released by administrators Korda Mentha says parties to the legal action involving former Ansett workers have agreed in principle to settle the action.
The parties hope to approach the Federal Court next week to seek orders to implement the agreement.
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AAP
11:51 AEDT Fri 21 Nov 2003
Ansett unlocks funds to pay workers
An in-principle agreement has been reached to end long-running litigation blocking the payment of $415 million to former Ansett Airlines' workers and creditors.
The agreement was announced in the Federal Court in Melbourne on Friday.
The dispute concerns $180 million claimed by a staff superannuation fund from Ansett's administrators.
Lawyer Joseph Santamaria, QC, for fund's trustees, told the court on Friday that an in-principle agreement had been reached between the parties.
Details of the proposed agreement will be announced in court next Tuesday.
The proposed settlement follows three days of intense mediation between the administrators and the trustees, together with the federal government and the ACTU.
Justice Alan Goldberg welcomed the prospect of the an end to the dispute, saying he had been concerned about the length and cost of the litigation.
"If the parties have reached a settlement ... then the parties are to be commended for that," he said.
The deal will involve an alteration to the deed of company arrangement approved by Ansett creditors in March 2002, which prevented the company being liquidated.
The move blocked the $180 million from going to the Ansett Ground Staff Superannuation Plan.
However, the majority of the former airlines' staff approved the deed hoping it would speed the payment of redundancy entitlements.
It is understood the federal government, as Ansett's biggest single creditor, will be a party to the agreement.
The administrators have $415 million in the bank but are unable to distribute the money until the case is resolved.
The case has already been before the Victorian Supreme Court and the Court of Appeal before reaching the Federal Court.
İAAP 2003
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Last edited by Wirraway; 21st Nov 2003 at 10:34.