Ansett: Air NZ stripped assets
Tues "Herald Sun". .. .Ansett: Air NZ stripped assets. .By Luke McIlveen. .19mar02. .. .ANSETT's administrators are considering legal action against former parent company Air New Zealand for allegedly stripping the Australian airline's assets, despite a $150 million payment that Air New Zealand believed would absolve it of any liability.. .. .The second creditors report by administrators Andersen, released yesterday, said there was evidence Air New Zealand had engaged in "asset stripping" and the "inappropriate charging of fuel and other operating costs" prior to Ansett's collapse. . .Air New Zealand has repeatedly denied the allegations and the New Zealand Government oversaw a one-off $150 million payment to Ansett to clear the parent company of future liability. . .. .New Zealand Prime Minister Helen Clark has said the company had inherited a "lemon" that was bleeding funds before Air New Zealand became involved. . .. .Administrators Mark Mentha and Mark Korda confirmed in their latest report that action might also be taken against the Ansett Group of Companies for granting handsome bonuses to some executives in August 2001, barely a month before the 66-year-old airline collapsed. . .. .However, the report emphasised that any proposed legal action against Tesna, the consortium headed by businessmen Lindsay Fox and Solomon Lew, had virtually no chance of succeeding. . .. .The administrators and trade unions had previously hinted at seeking compensation from Tesna for its 11th-hour withdrawal from the Ansett deal. . .. .The administrators confirmed they would recommend that creditors enter into a Deed of Company Arrangement rather than place the failed airline into liquidation. . .. .As such, they are hopeful of selling key Ansett assets -- including the domestic airport terminals at Sydney airports -- with a view to recovering maximum value. . .. .As expected, unsecured creditors can expect nothing in the wake of the Tesna withdrawal. Mr Korda and Mr Mentha said they had hoped to return up to 5c in the dollar to holders of frequent flyer points, but the collapse of the Tesna deal made any return unlikely. . .. ."If the sale did not complete, it was unlikely there would be enough funds to pay priority creditors in full and therefore no dividend would be available to other unsecured creditors," the report said. . .. .The revamped Virgin Blue -- which last week received a $260 million injection from Patrick Corp -- has expressed interest in the terminals, along with the Government-owned Sydney Airports Corp. . .. .The report revealed that Singapore Airlines had also entered the bidding for the terminals and other key Ansett assets. . .. .The federal Government's decision to put Sydney Airport back on the market has put SACL in the frontrunning for the terminals because it would significantly increase the airport's value. . .. .Tony Stuart, chief executive of SACL, last week confirmed he was interested in securing the terminals with a view to leasing them to a range of airlines. . .. .An information memorandum will be issued to the interested parties this week, outlining the range of Ansett assets available.