Webcast....still no certainty of sale
Thread Starter
Join Date: Oct 1999
Posts: 43
Likes: 0
Received 0 Likes
on
0 Posts
Webcast....still no certainty of sale
Just followed proceedings of the 2nd creditors meeting to hear, more time needed for the sale to be finalised. So no future assured still!!!!
And who the hell was the oddball with the $5Billion dollar cheque....bit late pal.
And who the hell was the oddball with the $5Billion dollar cheque....bit late pal.
Join Date: Mar 2001
Location: Townsville,Nth Queensland
Posts: 2,717
Likes: 0
Received 0 Likes
on
0 Posts
Creditors accept Ansett sale. . . .From AAP. .29jan02
MILLIONAIRE businessmen Lindsay Fox and Solomon Lew have won the approval of Ansett creditors to take over the collapsed airline.
However, today's vote does not guarantee the $514 million deal with the Fox/Lew company Tesna will go ahead.
Ansett was expected to be handed over to Tesna on Friday, but administrator Mark Korda of Andersen said the syndicate was unprepared to take over the airline at that time.
Mr Korda said while 250 lawyers, accountants and other professionals had been working on the deal, there were some issues - mostly to do with third parties - that had not been settled.
He said the delay meant there was a risk Tesna may not complete the deal, but said administrators still believed it would go ahead.
Mr Korda said the extension of time was necessary because although most commercial issues had been resolved in relation to the sale, it was very complex.
He said legal matters needed to be determined in relation to terminal leases, information technology licences, aircraft leases, and the sale also required the approval of the Federal Court.
Tesna has 30 extra days from the original January 31 deadline to complete the sale.
The risk would also include a trading loss of $2.5 million-a-week and an info-tech bill of $3.5 million-a-week.
Despite the delay, administrators still recommended creditors vote in favour of the Tesna proposal.
"It is a difficult decision but we have come too far," Mr Korda said.
"We need creditors to understand the risk. It will cost us some money to get there but it has cost us money to get here."
The sale was carried on a show of hands of 1,200 of the approximately 1,500 creditors after a two-hour meeting at Vodafone Arena in Melbourne.
The Tesna deal is worth $514 million including $244 million in entitlements and $270 million cash.
Four thousand of the 15,000 Ansett jobs lost in the September collapse will be saved.
The ACTU represented the largest group of creditors - the employees - while credit card company Diners Club held the proxy votes for frequent flyer club members.
The ACTU signed an in principle agreement with Fox/Lew securing $244 million in employee entitlements only this morning.
About three million creditors are owed $3.4 billion, including:
- $730 million in employee entitlements;
- $140 million in frequent flyer points (members say worth $1.4 billion);
- $167 million to banks.
Employees should receive a 100 per cent return while other creditors can expect a return of five cents in the dollar.
The meeting started at 3pm (AEDT) and ended straight after the vote at 5.10pm (AEDT).
MILLIONAIRE businessmen Lindsay Fox and Solomon Lew have won the approval of Ansett creditors to take over the collapsed airline.
However, today's vote does not guarantee the $514 million deal with the Fox/Lew company Tesna will go ahead.
Ansett was expected to be handed over to Tesna on Friday, but administrator Mark Korda of Andersen said the syndicate was unprepared to take over the airline at that time.
Mr Korda said while 250 lawyers, accountants and other professionals had been working on the deal, there were some issues - mostly to do with third parties - that had not been settled.
He said the delay meant there was a risk Tesna may not complete the deal, but said administrators still believed it would go ahead.
Mr Korda said the extension of time was necessary because although most commercial issues had been resolved in relation to the sale, it was very complex.
He said legal matters needed to be determined in relation to terminal leases, information technology licences, aircraft leases, and the sale also required the approval of the Federal Court.
Tesna has 30 extra days from the original January 31 deadline to complete the sale.
The risk would also include a trading loss of $2.5 million-a-week and an info-tech bill of $3.5 million-a-week.
Despite the delay, administrators still recommended creditors vote in favour of the Tesna proposal.
"It is a difficult decision but we have come too far," Mr Korda said.
"We need creditors to understand the risk. It will cost us some money to get there but it has cost us money to get here."
The sale was carried on a show of hands of 1,200 of the approximately 1,500 creditors after a two-hour meeting at Vodafone Arena in Melbourne.
The Tesna deal is worth $514 million including $244 million in entitlements and $270 million cash.
Four thousand of the 15,000 Ansett jobs lost in the September collapse will be saved.
The ACTU represented the largest group of creditors - the employees - while credit card company Diners Club held the proxy votes for frequent flyer club members.
The ACTU signed an in principle agreement with Fox/Lew securing $244 million in employee entitlements only this morning.
About three million creditors are owed $3.4 billion, including:
- $730 million in employee entitlements;
- $140 million in frequent flyer points (members say worth $1.4 billion);
- $167 million to banks.
Employees should receive a 100 per cent return while other creditors can expect a return of five cents in the dollar.
The meeting started at 3pm (AEDT) and ended straight after the vote at 5.10pm (AEDT).
Join Date: Oct 2000
Location: Oztralia, near MEL
Posts: 171
Likes: 0
Received 0 Likes
on
0 Posts
[quote]Mr Korda said while 250 lawyers, accountants and other professionals had been working on the deal, there were some issues - mostly to do with third parties - that had not been settled. <hr></blockquote>
. .Issues like Tesna doesn't have an AOC yet!
. .Issues like Tesna doesn't have an AOC yet!
Join Date: Apr 2001
Location: Brisbane
Posts: 39
Likes: 0
Received 0 Likes
on
0 Posts
Another 30 days! (Have I read your post right, Wirraway) My god, this is just dragging on and on and on. It's driving ME nuts - and I dont even work for Ansett. I really pity the poor staff who DO (or did). I was hoping there would be some relief, in the way of a definate move forward, for everyone involved today. Or even a of some kind closure for others. Playing the waiting game is really tough - but this is cruel. How are you poor guys staying sane? How are your families coping? <img src="frown.gif" border="0">
Join Date: Mar 2001
Location: Townsville,Nth Queensland
Posts: 2,717
Likes: 0
Received 0 Likes
on
0 Posts
It should also be noted if Fox/Lew decided. .to call it all off, that there is an agreement. .with the administrators, that they (Fox/Lew). .would receive $5 Mil for their expenses.
Guest
Join Date: Feb 2001
Posts: 542
Likes: 0
Received 0 Likes
on
0 Posts
All the way down I bet. Anyone with a hand has got it in the AN pocket it seems. If that loss of six mil a week is correct its hard to see this one getting up. <img src="rolleyes.gif" border="0">
[ 29 January 2002: Message edited by: Soup Nazi ]</p>
[ 29 January 2002: Message edited by: Soup Nazi ]</p>
Join Date: Dec 2001
Location: Australia
Posts: 20
Likes: 0
Received 0 Likes
on
0 Posts
Wirraway, Thanks for the info.
Mind boggling stuff, So "The Creditors" will be paying the losses while the "two Ronnies" mess around with "the carcass of Ansett" Unbelievable, but only in Australia.
What the hell is an INFO-TECH loss of $3.5 Million a week. They can't be serious, how can running a web server, which you can download for free from the Internet cost creditors more than about $10,000 per week including the bandwidth???? They probably have only one or two IT staff looking after it.
I thought AN MK2 was loosing only about $1 Million a week. So does this mean that the two Marks have blown over $100 Million during the last four Months
They said it was worth more flying that if liquidated. I find it hard to beleive that the Langcorp bid was less thn $170 Million. The "two Ronnies are paying $270 Million for it. The Staff are Paying $244 Million of their entitlements. I hope to god that the ticket levy will cover their entitlements. The media keep telling us that the Tesna bid is worth more as they are employing more staff, does anyone really believe them??
I am still waiting for my redundancy pay, where is it?? Are the two Marks getting so much interest on the Taxpayer funded SEESA payout that they don't want to pay out?
. . <img src="eek.gif" border="0"> <img src="eek.gif" border="0">
Mind boggling stuff, So "The Creditors" will be paying the losses while the "two Ronnies" mess around with "the carcass of Ansett" Unbelievable, but only in Australia.
What the hell is an INFO-TECH loss of $3.5 Million a week. They can't be serious, how can running a web server, which you can download for free from the Internet cost creditors more than about $10,000 per week including the bandwidth???? They probably have only one or two IT staff looking after it.
I thought AN MK2 was loosing only about $1 Million a week. So does this mean that the two Marks have blown over $100 Million during the last four Months
They said it was worth more flying that if liquidated. I find it hard to beleive that the Langcorp bid was less thn $170 Million. The "two Ronnies are paying $270 Million for it. The Staff are Paying $244 Million of their entitlements. I hope to god that the ticket levy will cover their entitlements. The media keep telling us that the Tesna bid is worth more as they are employing more staff, does anyone really believe them??
I am still waiting for my redundancy pay, where is it?? Are the two Marks getting so much interest on the Taxpayer funded SEESA payout that they don't want to pay out?
. . <img src="eek.gif" border="0"> <img src="eek.gif" border="0">
Join Date: Jun 2001
Posts: 1,451
Likes: 0
Received 0 Likes
on
0 Posts
[quote]Mr Korda said while 250 lawyers, accountants and other professionals had been working on the deal, there were some issues - mostly to do with third parties - that had not been settled.<hr></blockquote>
Translation: Give us (FLEW) the terminals to do with as we want, (like transfer them, without delay to a [quote]"third party"[unquote], and then, and only then, will we take over your loss-making airline.
.... for how long remains to be seen.
Call me a cynic, but I wouldn't be taking out any mortgages on the strength of a secure job with Tesna for the foreseeable future.
[ 29 January 2002: Message edited by: Wiley ]</p>
Translation: Give us (FLEW) the terminals to do with as we want, (like transfer them, without delay to a [quote]"third party"[unquote], and then, and only then, will we take over your loss-making airline.
.... for how long remains to be seen.
Call me a cynic, but I wouldn't be taking out any mortgages on the strength of a secure job with Tesna for the foreseeable future.
[ 29 January 2002: Message edited by: Wiley ]</p>
Don Quixote Impersonator
Join Date: Jul 1999
Location: Australia
Age: 77
Posts: 3,403
Likes: 0
Received 0 Likes
on
0 Posts
Did I read that correctly, "the administrators pay FLEW $5million if they, FLEW, don't go ahead.
I must be going insane or someone is. I thought in real business it was the other way around, you paid a deposit and forfeited it if you didn't go ahead. Must be something in the water in Melbourne. <img src="confused.gif" border="0">
So lets see if I've got this straight.. .1. The creditors are now paying $6million a week on top of the several godzillion dollars they have ALREADY paid on the chance that FLEW can get their ducks lined up the way that THEY want em, to complete a sale.
2. If they, FLEW, don't, decide it is too hard, or they can't get the real prize for nothing and it is NOT the airline, then the creditors get to pay FLEW another $5million for the privilege of spending their, the creditors, money, see above, to fund a deal that was always dodgy from day 1.
3. And of course the administrators cash register is still ringing it head off.
What a deal, you get paid to see if you can get something for nothing.
That's not 'selling' anything, that's the best example of BOHICA I've seen in a long time.
And don't try the "oh well FLEW are spending their money too, to try to find a way buy it and save us all" routine on me, lest I laugh myself to death. <img src="eek.gif" border="0">
It's a good thing that it's summer in Melb, lest those involved catch their death of cold whilst walking around naked. <img src="rolleyes.gif" border="0">
I'm not surprised the Federal Govt are keeping the ticket levy going, I think the Staff are going to need it.
Only in Australia. <img src="frown.gif" border="0">
I must be going insane or someone is. I thought in real business it was the other way around, you paid a deposit and forfeited it if you didn't go ahead. Must be something in the water in Melbourne. <img src="confused.gif" border="0">
So lets see if I've got this straight.. .1. The creditors are now paying $6million a week on top of the several godzillion dollars they have ALREADY paid on the chance that FLEW can get their ducks lined up the way that THEY want em, to complete a sale.
2. If they, FLEW, don't, decide it is too hard, or they can't get the real prize for nothing and it is NOT the airline, then the creditors get to pay FLEW another $5million for the privilege of spending their, the creditors, money, see above, to fund a deal that was always dodgy from day 1.
3. And of course the administrators cash register is still ringing it head off.
What a deal, you get paid to see if you can get something for nothing.
That's not 'selling' anything, that's the best example of BOHICA I've seen in a long time.
And don't try the "oh well FLEW are spending their money too, to try to find a way buy it and save us all" routine on me, lest I laugh myself to death. <img src="eek.gif" border="0">
It's a good thing that it's summer in Melb, lest those involved catch their death of cold whilst walking around naked. <img src="rolleyes.gif" border="0">
I'm not surprised the Federal Govt are keeping the ticket levy going, I think the Staff are going to need it.
Only in Australia. <img src="frown.gif" border="0">
Evertonian
My personal favourite was the retired TNT/Fox employee who paid out on big Lindsay! Haven't laughed that hard in ages, although the $5billion offer came close!!! 
Guest
Join Date: Feb 2001
Posts: 542
Likes: 0
Received 0 Likes
on
0 Posts
I wish I could cut a deal like that. What a joke. The VB offer looks better all the time! I'm just glad I dont work there. <img src="rolleyes.gif" border="0">
The administrators are feeding on the fat now and the juice is running down their cheeks. Surely someone is accountable? <img src="confused.gif" border="0">
[ 29 January 2002: Message edited by: Soup Nazi ]</p>
The administrators are feeding on the fat now and the juice is running down their cheeks. Surely someone is accountable? <img src="confused.gif" border="0">
[ 29 January 2002: Message edited by: Soup Nazi ]</p>
Join Date: Nov 2000
Location: Australia
Posts: 6
Likes: 0
Received 0 Likes
on
0 Posts
Absolutely a disgrace. The two Marks need to drawn and quartered on this issue. If they can continue to fly at a Loss of $6m per week they can bloody well afford to pay out staff and creditors and take the empty airplanes out of the sky. I have no interest in Ansett at all except for a few friends that use to work there in various non-flying roles that are desperate for their money to keep their houses and their families going. It should have been wound up in September and at least people would have been able to get on with their lives. . .The size of the Ego's that must pervade the board room at Tesna and Anderson's obviously do not leave any room for honesty, integrity, or just plain commonsense. . .One question, were the creditors informed before or after the vote that Flew will not take over for up to a month and then may not do it at all. Just wondering. . .Fair dinkum, this has to be one of the most conspired deals in recent history. OR am i just cynical. . .ABSOLUTELY DISGUSTING.
Join Date: Mar 2001
Location: Townsville,Nth Queensland
Posts: 2,717
Likes: 0
Received 0 Likes
on
0 Posts
Wed "Sydney Morning Herald"
Legal hitches leave Ansett under a cloud
By Darren Goodsir, Transport Writer
. .Ansett's proposed sale was in doubt last night, despite creditors overwhelmingly endorsing the transfer of the airline's main operations to the Tesna syndicate.
The administrators, Mark Mentha and Mark Korda, surprised an audience of 1500 creditors by revealing it had become impossible to complete the sale by Friday, the day businessmen Solomon Lew and Lindsay Fox were to resume full-service trips on an expanded network.
Mr Korda said legal problems, including the failure to secure a lease agreement at Sydney Airport and other terminals - as well as hitches over technology licences and aircraft leases - meant there was no way the sale could be completed.
He expressed confidence the sale would proceed, but also raised the prospect it could falter.
Mr Korda set a deadline of 30 days to resolve the transaction. If no deal had been reached by then, the airline would be grounded.
He conceded the delay would hurt the airline's revival plans, and Tesna's hopes to steal a 25 per cent market share from rivals Qantas and Virgin Blue. Mr Fox and Mr Lew had "personally reaffirmed ... their total commitment to getting the Ansett business up in the air", he said.
"But there is no stability.
"Although we believe they will complete, they may decide not to complete ... that is the risk.
"If Tesna doesn't complete then we will have to cease flying and that will ultimately affect the return to creditors.
"The mere delay in settlement will cause uncertainty in employees' minds, it will cause uncertainty in the public. We understand those pressures.
"Mark and I, after much consultation ... believe, on balance, that Tesna will complete. If there isn't sufficient certainty of that completion, we will terminate."
The delay in selling Ansett, approved on a show of hands, means the administrators must continue to absorb losses - running at about $6 million a week. But Mr Korda said this would not diminish the return to creditors, tipped at about 5¢ in the dollar.
The ACTU secretary, Greg Combet, who just before the meeting concluded a deal with Tesna to secure $240 million in entitlements for 4000 new workers, expressed surprise the sale could not be completed.
Mr Lew and Mr Fox said they were pleased with the vote.
"The outcome of the meeting ... represents the satisfaction of a critical prerequisite as we work towards the completion of the sale agreement of the administrators," they said in a statement.
"Support for the sale agreement with Tesna by the creditors, particularly from our prospective employees and customers, is valued as a vote of confidence."
The administrators revealed Tesna had signed an agreement with the Star Alliance network of international airlines.
It would also announce a revived frequent flyer plan in a few days that recognised members of the Global Rewards program, who lost 70 billion points when the airline was grounded in September.
A spokesman for the Sydney Airport Corporation said last night it was working hard to complete the assignment of Ansett's leases to the new owners but had received insufficient information on the structuring of the deal.
Mr Combet accused the corporation of setting unreasonable demands on the Tesna syndicate to maximise commercial returns ahead of a proposed privatisation.
"The Sydney Airports Corporation is the major hurdle causing this delay," he said. "We want them to get off their backsides and make sure this is fixed very quickly. They need to get their act together very quickly."
[ 29 January 2002: Message edited by: Wirraway ]</p>
Legal hitches leave Ansett under a cloud
By Darren Goodsir, Transport Writer
. .Ansett's proposed sale was in doubt last night, despite creditors overwhelmingly endorsing the transfer of the airline's main operations to the Tesna syndicate.
The administrators, Mark Mentha and Mark Korda, surprised an audience of 1500 creditors by revealing it had become impossible to complete the sale by Friday, the day businessmen Solomon Lew and Lindsay Fox were to resume full-service trips on an expanded network.
Mr Korda said legal problems, including the failure to secure a lease agreement at Sydney Airport and other terminals - as well as hitches over technology licences and aircraft leases - meant there was no way the sale could be completed.
He expressed confidence the sale would proceed, but also raised the prospect it could falter.
Mr Korda set a deadline of 30 days to resolve the transaction. If no deal had been reached by then, the airline would be grounded.
He conceded the delay would hurt the airline's revival plans, and Tesna's hopes to steal a 25 per cent market share from rivals Qantas and Virgin Blue. Mr Fox and Mr Lew had "personally reaffirmed ... their total commitment to getting the Ansett business up in the air", he said.
"But there is no stability.
"Although we believe they will complete, they may decide not to complete ... that is the risk.
"If Tesna doesn't complete then we will have to cease flying and that will ultimately affect the return to creditors.
"The mere delay in settlement will cause uncertainty in employees' minds, it will cause uncertainty in the public. We understand those pressures.
"Mark and I, after much consultation ... believe, on balance, that Tesna will complete. If there isn't sufficient certainty of that completion, we will terminate."
The delay in selling Ansett, approved on a show of hands, means the administrators must continue to absorb losses - running at about $6 million a week. But Mr Korda said this would not diminish the return to creditors, tipped at about 5¢ in the dollar.
The ACTU secretary, Greg Combet, who just before the meeting concluded a deal with Tesna to secure $240 million in entitlements for 4000 new workers, expressed surprise the sale could not be completed.
Mr Lew and Mr Fox said they were pleased with the vote.
"The outcome of the meeting ... represents the satisfaction of a critical prerequisite as we work towards the completion of the sale agreement of the administrators," they said in a statement.
"Support for the sale agreement with Tesna by the creditors, particularly from our prospective employees and customers, is valued as a vote of confidence."
The administrators revealed Tesna had signed an agreement with the Star Alliance network of international airlines.
It would also announce a revived frequent flyer plan in a few days that recognised members of the Global Rewards program, who lost 70 billion points when the airline was grounded in September.
A spokesman for the Sydney Airport Corporation said last night it was working hard to complete the assignment of Ansett's leases to the new owners but had received insufficient information on the structuring of the deal.
Mr Combet accused the corporation of setting unreasonable demands on the Tesna syndicate to maximise commercial returns ahead of a proposed privatisation.
"The Sydney Airports Corporation is the major hurdle causing this delay," he said. "We want them to get off their backsides and make sure this is fixed very quickly. They need to get their act together very quickly."
[ 29 January 2002: Message edited by: Wirraway ]</p>
Join Date: Mar 2001
Location: Townsville,Nth Queensland
Posts: 2,717
Likes: 0
Received 0 Likes
on
0 Posts
Wed "Australian Financial Review"
Airport row delays Ansett. .Jan 30. .Simon Evans and George Lekakis
. .The Tesna syndicate has put on hold for up to 30 days its plan to take over Ansett because of a dispute over the Sydney airport terminal, despite winning approval from the airline's creditors for the $3 billion deal.
Sydney Airport Corporation has demanded a full examination of Tesna's business plan and also wants stringent conditions that would allow other airlines to use the Mascot terminal.
The unexpected hitch has triggered fresh uncertainty about the plan by Melbourne businessmen Mr Lindsay Fox and Mr Solomon Lew and their United States backers to restructure Ansett, which is losing about $2.5 million a week.
Ansett co-administrator Mr Mark Korda stunned the creditors' meeting in Melbourne when he revealed the settlement would not be completed in time for Tesna's proposed Friday start-up.
But the administrators still recommended creditors vote for the sale to Tesna. About 90 per cent of the 1,500 creditors then approved the deal on a show of hands towards the end of the two-hour meeting.
Mr Korda said he remained confident that the Tesna consortium would resolve the issues with Sydney Airports Corp, but admitted the delay created uncertainties for creditors and employees.
"It will cause uncertainty in the public," he said. But he added that Mr Fox and Mr Lew were committed to sealing the deal.
"They have been unerring in their commitment," he said.
The delay has raised concerns that the additional costs of the administration of Ansett will further cut the proposed payout of up to just 5¢ in the dollar to unsecured creditors owed $1.98 billion.
It has also opened the way for rivals Qantas and Virgin Blue to put more pressure on Ansett, which has been struggling to win back customers since the administrators took control of the airline on September 17.
The row with Sydney Airport Corporation centres on a dispute over Tesna using the Mascot terminal as security for the bulk of $244 million in Ansett employee entitlements, but includes several other key issues.
Unions had demanded that the entitlements of up to 4,000 workers being re-hired by the new Ansett be protected in case it ran into financial problems again.
Sydney Airport Corporation spokesman Mr Peter Gibbs said last night there were a "number of commercial and legal issues which still need to be resolved".
The delay in settlement has also stemmed from hold-ups in the transfer of licences for 13 key pieces of information technology used in airline operations.
Mr Korda said February was traditionally a poor month for airlines and the projections were for trading losses of $2.5 million each week at Ansett, while it would cost a further $3.5 million a week to run information technology systems and other key functions.
He said the delay to settlement did introduce risks that the deal might not be finalised at all, but on balance it was the right one to make.
"It is a difficult decision, but we have come too far," he said.
But Mr Korda acknowledged the slippage in the timetable would bring some uncertainty.
But Ansett administrator Mr Mark Mentha disputed the prospect of a significant impact on creditor payout forecasts from the delay.
He said there was in-built flexibility in the forecasts to creditors, which had already factored in the possibility of a slippage in the timetable and used conservative estimates.
Most of the questions from creditors at the meeting related to the future of their Global Rewards frequent-flyer points, with one creditor saying it was "lamentable" that a vote was being taken on the sale without Tesna having detailed its proposals for a new scheme.
In response, Mr Korda told the meeting that in a conversation with Mr Fox earlier on Tuesday he was told creditors would be "very happy" with the new scheme, with details possibly being announced within seven days.
Tesna plans to reduce Ansett's fleet of 133 planes to 16 in the initial start-up phase, with business and economy services on eight routes.
Also yesterday, a Global Rewards Action Group revealed it was contemplating a class action against the administrators over what they claim is a substantial undervaluing of their frequent-flyer points.
It was also revealed yesterday that Tesna had signed an agreement for the new Ansett to join the global airline loyalty program Star Alliance, which comprises 14 carriers.
. .The managing director of Diner's Club, Mr Bryan Ericson, said after the meeting that his company had worked with Tesna for several weeks to develop a new loyalty program.
ACTU secretary Mr Greg Combet said yesterday that he had held personal talks with Mr Fox and Mr Lew on Monday night. The approval of the sale to Tesna meant upwards of 7,000 jobs would be saved. Mr Combet appealed to all third parties to hasten the process to ensure settlement as soon as possible.
"We appeal to all those third parties, and most particularly the Sydney Airports Corporation, to get on with it and get their issues resolved and to take a sensible position, because there's thousands of people's livelihoods at stake."
Airport row delays Ansett. .Jan 30. .Simon Evans and George Lekakis
. .The Tesna syndicate has put on hold for up to 30 days its plan to take over Ansett because of a dispute over the Sydney airport terminal, despite winning approval from the airline's creditors for the $3 billion deal.
Sydney Airport Corporation has demanded a full examination of Tesna's business plan and also wants stringent conditions that would allow other airlines to use the Mascot terminal.
The unexpected hitch has triggered fresh uncertainty about the plan by Melbourne businessmen Mr Lindsay Fox and Mr Solomon Lew and their United States backers to restructure Ansett, which is losing about $2.5 million a week.
Ansett co-administrator Mr Mark Korda stunned the creditors' meeting in Melbourne when he revealed the settlement would not be completed in time for Tesna's proposed Friday start-up.
But the administrators still recommended creditors vote for the sale to Tesna. About 90 per cent of the 1,500 creditors then approved the deal on a show of hands towards the end of the two-hour meeting.
Mr Korda said he remained confident that the Tesna consortium would resolve the issues with Sydney Airports Corp, but admitted the delay created uncertainties for creditors and employees.
"It will cause uncertainty in the public," he said. But he added that Mr Fox and Mr Lew were committed to sealing the deal.
"They have been unerring in their commitment," he said.
The delay has raised concerns that the additional costs of the administration of Ansett will further cut the proposed payout of up to just 5¢ in the dollar to unsecured creditors owed $1.98 billion.
It has also opened the way for rivals Qantas and Virgin Blue to put more pressure on Ansett, which has been struggling to win back customers since the administrators took control of the airline on September 17.
The row with Sydney Airport Corporation centres on a dispute over Tesna using the Mascot terminal as security for the bulk of $244 million in Ansett employee entitlements, but includes several other key issues.
Unions had demanded that the entitlements of up to 4,000 workers being re-hired by the new Ansett be protected in case it ran into financial problems again.
Sydney Airport Corporation spokesman Mr Peter Gibbs said last night there were a "number of commercial and legal issues which still need to be resolved".
The delay in settlement has also stemmed from hold-ups in the transfer of licences for 13 key pieces of information technology used in airline operations.
Mr Korda said February was traditionally a poor month for airlines and the projections were for trading losses of $2.5 million each week at Ansett, while it would cost a further $3.5 million a week to run information technology systems and other key functions.
He said the delay to settlement did introduce risks that the deal might not be finalised at all, but on balance it was the right one to make.
"It is a difficult decision, but we have come too far," he said.
But Mr Korda acknowledged the slippage in the timetable would bring some uncertainty.
But Ansett administrator Mr Mark Mentha disputed the prospect of a significant impact on creditor payout forecasts from the delay.
He said there was in-built flexibility in the forecasts to creditors, which had already factored in the possibility of a slippage in the timetable and used conservative estimates.
Most of the questions from creditors at the meeting related to the future of their Global Rewards frequent-flyer points, with one creditor saying it was "lamentable" that a vote was being taken on the sale without Tesna having detailed its proposals for a new scheme.
In response, Mr Korda told the meeting that in a conversation with Mr Fox earlier on Tuesday he was told creditors would be "very happy" with the new scheme, with details possibly being announced within seven days.
Tesna plans to reduce Ansett's fleet of 133 planes to 16 in the initial start-up phase, with business and economy services on eight routes.
Also yesterday, a Global Rewards Action Group revealed it was contemplating a class action against the administrators over what they claim is a substantial undervaluing of their frequent-flyer points.
It was also revealed yesterday that Tesna had signed an agreement for the new Ansett to join the global airline loyalty program Star Alliance, which comprises 14 carriers.
. .The managing director of Diner's Club, Mr Bryan Ericson, said after the meeting that his company had worked with Tesna for several weeks to develop a new loyalty program.
ACTU secretary Mr Greg Combet said yesterday that he had held personal talks with Mr Fox and Mr Lew on Monday night. The approval of the sale to Tesna meant upwards of 7,000 jobs would be saved. Mr Combet appealed to all third parties to hasten the process to ensure settlement as soon as possible.
"We appeal to all those third parties, and most particularly the Sydney Airports Corporation, to get on with it and get their issues resolved and to take a sensible position, because there's thousands of people's livelihoods at stake."
Join Date: Dec 2001
Location: Sydney
Posts: 35
Likes: 0
Received 0 Likes
on
0 Posts
This is a stitch up surely.The creditors should have voted for liquidation,on the knowledge,that a sale was not yet finalised.Another thirty days they say.They also said they would be ready with a fleet of thirty 320's by the 1st of Feb.Why then do people vote with their eyes wide shut?