Ansett Administration??
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Ansett Administration??
Employee Update
An update for former Ansett employees Update 11
24 March, 2003
Dear former employee,
GROUND STAFF SUPERANNUATION PLAN TRUSTEES TO APPEAL
This afternoon Monday 24 March, 2003, the Trustees of the Ansett Ground Staff Superannuation Plan have served notice to appeal the decision and orders handed down by Justice Warren in the Supreme Court on 7th February, 2003.
This course of action is extremely regrettable. Ansett Administration, on behalf of all employees, won the case on 7th February, 2003. The Trustees, on the advice of their lawyers, have decided to appeal the decision, and unfortunately there is nothing we can do to change that decision. We will continue to work hard on your behalf to resolve the issues as quickly as possible.
We sincerely regret this frustrating position. To date the Ansett Administration has raised some $360million which is currently banked, and increasing as we continue to sell remaining assets including aircraft, spare parts and to pursue debt recoveries.
Due to the Trustees decision to appeal we remain as yet unable to distribute any part of these monies until this matter is fully resolved.
In summary, the court case is about whether we can distribute our cash reserves:
fairly and equitably to 15,000 employees as redundancy dividends (as voted by the creditors in the Deed of Company Arrangement), or
pay up to $200m to only 8700 members of the Ground Staff Plan.
Attached are some "Frequently Asked Questions" (with answers) in relation to this matter.
Should you have any further queries, you are welcome to telephone the staff hotline on 1800 151 604.
Mark Korda
Administrator Mark Mentha
Administrator
FREQUENTLY ASKED QUESTIONS
Now that notice of an appeal has been served, when will I receive any further redundancy monies?
The Supreme Court provided an advisory decision that the retrenchment benefit does not rank as a priority payment. This decision meant that we could make redundancy dividends in the manner set out in the Third Report to Creditors (i.e. initially three quarterly instalments, starting in December 2002, of 10%, 5% and 5% for amounts owing to employees of greater than 8 weeks redundancy).
If the Trustees withdraw the appeal, we could make the 10% and 5% dividend of the greater than 8 weeks amount, within 5 business days of the withdrawal, and then 5% by the end of June 2003. Otherwise, further payments can not be made until the matter is formerly resolved in Court.
If we have $360m in the bank, why can't we receive some of this immediately as a redundancy dividend?
We have $360m in the bank, which must be distributed in the correct priority as set out in Corporations Law and in the Deed of Company Arrangement.
The priority of distributions is such that the Government is to be repaid some $170m of the SEESA loan prior to redundancy dividends being made to employees. This, together with the Trustees claiming a superannuation contribution of up to $200m means that none of the $360m is currently available for employees.
An update for former Ansett employees Update 11
24 March, 2003
Dear former employee,
GROUND STAFF SUPERANNUATION PLAN TRUSTEES TO APPEAL
This afternoon Monday 24 March, 2003, the Trustees of the Ansett Ground Staff Superannuation Plan have served notice to appeal the decision and orders handed down by Justice Warren in the Supreme Court on 7th February, 2003.
This course of action is extremely regrettable. Ansett Administration, on behalf of all employees, won the case on 7th February, 2003. The Trustees, on the advice of their lawyers, have decided to appeal the decision, and unfortunately there is nothing we can do to change that decision. We will continue to work hard on your behalf to resolve the issues as quickly as possible.
We sincerely regret this frustrating position. To date the Ansett Administration has raised some $360million which is currently banked, and increasing as we continue to sell remaining assets including aircraft, spare parts and to pursue debt recoveries.
Due to the Trustees decision to appeal we remain as yet unable to distribute any part of these monies until this matter is fully resolved.
In summary, the court case is about whether we can distribute our cash reserves:
fairly and equitably to 15,000 employees as redundancy dividends (as voted by the creditors in the Deed of Company Arrangement), or
pay up to $200m to only 8700 members of the Ground Staff Plan.
Attached are some "Frequently Asked Questions" (with answers) in relation to this matter.
Should you have any further queries, you are welcome to telephone the staff hotline on 1800 151 604.
Mark Korda
Administrator Mark Mentha
Administrator
FREQUENTLY ASKED QUESTIONS
Now that notice of an appeal has been served, when will I receive any further redundancy monies?
The Supreme Court provided an advisory decision that the retrenchment benefit does not rank as a priority payment. This decision meant that we could make redundancy dividends in the manner set out in the Third Report to Creditors (i.e. initially three quarterly instalments, starting in December 2002, of 10%, 5% and 5% for amounts owing to employees of greater than 8 weeks redundancy).
If the Trustees withdraw the appeal, we could make the 10% and 5% dividend of the greater than 8 weeks amount, within 5 business days of the withdrawal, and then 5% by the end of June 2003. Otherwise, further payments can not be made until the matter is formerly resolved in Court.
If we have $360m in the bank, why can't we receive some of this immediately as a redundancy dividend?
We have $360m in the bank, which must be distributed in the correct priority as set out in Corporations Law and in the Deed of Company Arrangement.
The priority of distributions is such that the Government is to be repaid some $170m of the SEESA loan prior to redundancy dividends being made to employees. This, together with the Trustees claiming a superannuation contribution of up to $200m means that none of the $360m is currently available for employees.
