Court clears Ansett payouts

[Airtart]

By Susan Murdoch
December 20, 2002

ANSETT administrators have won a court case ensuring $200 million of entitlements from the airlines' assets would not be given to a superannuation fund.

Victorian Supreme Court Justice Marilyn Warren said the money owed to the Ansett Ground Staff Superannuation Fund did not attract priority over other creditors.

Outside court, Administrator Mark Korda said the $200 million would now remain in the pool of entitlements for Ansett's 15,000 former staff.

"The money will go to employees as their entitlements rather than being paid to superannuation, which the employees wanted and voted on," he said.

The parties will be back in court on Monday for orders but administrators cannot pay out the entitlements until the 21-day appeal period has finished.

[Buster Hyman]

At the expense of former Ansett employees, the administrators have won a case paid for by the former Ansett employees, against NSP Buck who launched the action for, and on behalf of the former Ansett employees, and was paid for by the former Ansett employees, to decide who gets to pay the $200 million to the former Ansett employees. Of course, there will probably be an appeal by NSP Buck on behalf of the former Ansett employees, to correct the verdict that went the way of the former Ansett employees, to ensure that the appeal is won by the former Ansett employees, naturally, any appeal process will be paid for out of funds belonging to former Ansett employees, and vigourously defended by the administrators on behalf of the former Ansett employees, to ensure that the previous decision remains in favour of the former Ansett employees, this will, of course be defended at the expense of the former Ansett employees, to ultimately ensure that the former Ansett employees, get their $200 million of entitlements....or whatever's left. :(

[TheNightOwl]

Oooohhhh, Buster! If I didn't know you better, I might think I detected a touch of bitter irony in your post! Surely not!

Kind regards, and Season's Greetings to all,

TheNightOwl.

[Airtart]

Employee Update


An update for former Ansett employees Update 05
20 December, 2002

Dear former employee,

GOOD NEWS BUT DECISION MAY BE APPEALED: We are pleased to advise that the Supreme Court has this afternoon ruled in our favour on the Ground Staff Superannuation proceeding.

We are very pleased with this outcome, however we must now await the decision of the Trustees as to whether there will be an appeal before any further redundancy instalments can be paid to employees.

The appeal period will commence on the handing down of the Court's orders detailing the judgement. The court will reconvene at 12 noon, Monday the 23rd of January to determine when it will make its orders.

Following release of the orders, the 21 day appeal period will commence to run . If there is no appeal, we intend to pay Instalment 1, being 10% of redundancy greater than 8 weeks, within 5 business days of the appeal expiry date, or the date upon which the trustees inform us they are appealing.

Whilst we regret that due to court processes we are not able to provide funds to you earlier, we respect the complexity of this issue, and are hopeful that the appeal period will expire without lodgement of an appeal from the Trustees.

REVISED PROOF OF DEBT PROCESS NOW DELAYED: Employee Update 04 informed that we planned to undergo a proof of debt process in January 03, for all employees.

However, with the favourable outcome of the superannuation case, we do not wish for this proof of debt process to impede in any way our payment of Instalment 1, should the appeal period expire without lodgment of an appeal. Therefore, the proof of debt process is now planned to be carried out soon after the payment of Instalment 1.


Mark Korda
Administrator


Mark Mentha
Administrator

[Buster Hyman]

TNO...there's not a bitter bone in my body! Now, if you said bent & twisted....

I saw some Union propaganda the other day about the proof of debt process. Basically, if you say they have not got the correct amount listed in your name, you get NO monies at all until it's resolved! This was prior to the last bit above.

[Airtart]

An update for former Ansett employees Update 06
24 December, 2002

Dear former employee,

UPDATE ON SUPREME COURT SUPERANNUATION CASE: The Supreme Court reconvened at 12 noon, yesterday Monday 23rd of December, 2002, to determine when it will make its orders following the Friday 20 December Supreme Court ruling in our favour on the Ground Staff Superannuation proceedings.

Her Honour Justice Warren today ordered that the matter return to court on 20 January 2003 at 9:30am. On that day, submissions will be made as to the final orders that should be made.

The appeal period will commence on the handing down of the Court's orders detailing the judgement.

Assuming that final orders are made on the 20th January, 2003, then the appeal time will start running immediately (14 days in which an appeal notice can be lodged).

We are of course very pleased with the initial ruling, and obliged to respect and follow court processes.

Critically, before any further redundancy instalments can be paid to employees we must now await the decision of the Trustees of the Ansett Australia Ground Staff Superannuation Plan as to whether there will be an appeal.

If there is no appeal, we intend to pay Instalment 1, being 10% of redundancy greater than 8 weeks, within 5 business days of the appeal expiry date.


Mark Korda
Administrator
Mark Mentha
Administrator

[Airtart]

THE $10-a-ticket Ansett levy on airline travellers may be suspended from February under a plan being considered by the Howard Government.

The proposal would put the tax on hold pending the outcome of court cases over the remnants of the now defunct national airline.

Under the plan, if Ansett administrators win the legal actions the levy would be dumped but it could be reimposed if the result goes the other way.

The levy, put in place to cover the entitlements of 10,000 Ansett workers that could not be covered by the liquidation process, is collecting more than $11 million a month from travellers.

But with administrators expected to recover about $300 million, they will be able to repay most of the near $400 million.

It is understood the Government believes that, with $140 million collected so far, it is close to raising enough money from the tax.

Any money left over after finalisation of all the sums, including considerable expenses, may be ploughed back into promoting tourism, some ministers suggest.

But ongoing court action by superannuation companies means at least $200 million of the administrators' recovered funds could still be at risk.

One superannuation fund lost a Victorian Supreme Court bid to secure first call on the money last week, but it has 21 days to appeal after Justice Marilyn Warren hands down the reasons for her decision next year.

Under the plan, to go to cabinet in the new year, once the Federal Court's reasons are handed down, the Government may suspend the levy awaiting any appeal, or subsequent court case.

If the administrators win, the levy could be discontinued, but if the superannuation companies win, the levy could be restarted to meet the outstanding costs.

Justice Warren said on December 19 the money owed to the Ansett Ground Staff Superannuation Fund did not attract priority over other creditors.

Federal Transport Minister John Anderson would not comment on the suspension plan yesterday, but a spokesman said the Government was keen to "speed up the process".

The Australian Services Union, which represents most administrative staff, wants the Government to pay all money collected immediately.

The Government, however, insists that -- while it is prepared to cover all entitlements -- it will wait until all the normal liquidation processes and court cases have been completed.

The federal Opposition and Virgin Blue have both called for the tax to be scrapped.

Tourism Task Force chief Christopher Brown yesterday said any move to end the Ansett levy would be welcom. He said the industry had accepted the need for the levy on John Howard's promise that it would be lifted as soon as it fulfilled its purpose.

The Australian