News: Legal threats fly as Ansett's airport row escalates
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News: Legal threats fly as Ansett's airport row escalates
I have posted 3 articles on this story from this . .mornings papers, as I feel you have to read. .them all to get a full feel for what is . .happening, hope you don't mind as I try to just. .pick the most informative usually, but there's different bits in each one to make it interesting.
Wirraway
Thurs "Melbourne Age"
Airport's claim dogs Tesna bid
By LEONIE WOOD. .Thursday 31 January 2002. .More at our Ansett mini-site. . . .Tensions between Ansett's administrators and the Sydney Airport Corporation Ltd escalated yesterday amid claims that the airport owner is demanding a cash payment of about $20 million from Ansett's new owners, Tesna.
The so-called performance bond is said to be the biggest hurdle in talks between SACL, Ansett's administrators and Tesna, controlled by Melbourne businessmen Lindsay Fox and Solomon Lew, as the parties negotiate the transfer of a lease over Ansett's Sydney domestic terminal.
SACL, owned by the Federal Government, yesterday claimed it should not be blamed for delays in finalising Tesna's $514 million purchase of the failed airline. The administrators, Mark Mentha and Mark Korda of accounting firm Andersen, this week were forced to extend Tesna's sale deadline by up to 30 days.
In an apparent effort to turn up the heat on SACL, the administrators yesterday warned the Federal Court that they may need to seek directions on what to do if an unsecured creditor of Ansett was seeking a preferential payment. Counsel for the administrators, Simon Whelan QC, did not name SACL as the unsecured creditor.
A preferential payment is one that is paid ahead of other creditors.
Justice Susan Kenny suggested the administration team raise the concern with Justice Alan Goldberg, who has handled most of the Ansett issues over the past four months.
SACL is believed to be owed at least $4million from the collapse of Ansett, mostly arising from so-called aeronautical charges. These are fees levied by airport owners on airline operators for use of the general airport areas outside terminals, and they cover costs such as passenger security and runway maintenance.
A spokesman for SACL initially said the company's in-house lawyers had requested that he make no comment on the matter raised in court. But SACL later shot back with a two-page statement blaming the sale delays on Ansett's administrators.
SACL acknowledged it was seeking "performance security" from Tesna to cover aeronautical charges. It argued that "while other creditors are being offered security, airports, including Sydney, are being offered nothing".
SACL's chief executive Tony Stuart claimed it was now up to the administrators and Tesna to resolve the outstanding issues. He said they had failed to provide "vital information" about Tesna, including details about its shareholding and financial structure, funding arrangements and business plan.
It also claimed that despite several requests for information about Tesna, including letters on December 31 and January 17, Ansett's administrators did not initiate a meeting with SACL to discuss the Sydney lease transfer until January 17, just two weeks before the original sale deadline.
SACL claimed the administrators had "declined to discuss with us" a contingency plan to allow Tesna to use the Sydney terminal from February 1 until the sale was finalised.
In a brief statement, one of Ansett's administrators, Mark Korda, said that under the terms of the existing lease, the administration team had provided all the information necessary to get the Tesna transfer done. He was not available for further comment.
Tesna declined to comment, saying it would not conduct its commercial negotiations through the media.
Last night, the office of Finance Minister Nick Minchin was waiting for an update on the talks. But a spokeswoman said the government could not intervene.
[ 30 January 2002: Message edited by: Wirraway ]</p>
Wirraway
Thurs "Melbourne Age"
Airport's claim dogs Tesna bid
By LEONIE WOOD. .Thursday 31 January 2002. .More at our Ansett mini-site. . . .Tensions between Ansett's administrators and the Sydney Airport Corporation Ltd escalated yesterday amid claims that the airport owner is demanding a cash payment of about $20 million from Ansett's new owners, Tesna.
The so-called performance bond is said to be the biggest hurdle in talks between SACL, Ansett's administrators and Tesna, controlled by Melbourne businessmen Lindsay Fox and Solomon Lew, as the parties negotiate the transfer of a lease over Ansett's Sydney domestic terminal.
SACL, owned by the Federal Government, yesterday claimed it should not be blamed for delays in finalising Tesna's $514 million purchase of the failed airline. The administrators, Mark Mentha and Mark Korda of accounting firm Andersen, this week were forced to extend Tesna's sale deadline by up to 30 days.
In an apparent effort to turn up the heat on SACL, the administrators yesterday warned the Federal Court that they may need to seek directions on what to do if an unsecured creditor of Ansett was seeking a preferential payment. Counsel for the administrators, Simon Whelan QC, did not name SACL as the unsecured creditor.
A preferential payment is one that is paid ahead of other creditors.
Justice Susan Kenny suggested the administration team raise the concern with Justice Alan Goldberg, who has handled most of the Ansett issues over the past four months.
SACL is believed to be owed at least $4million from the collapse of Ansett, mostly arising from so-called aeronautical charges. These are fees levied by airport owners on airline operators for use of the general airport areas outside terminals, and they cover costs such as passenger security and runway maintenance.
A spokesman for SACL initially said the company's in-house lawyers had requested that he make no comment on the matter raised in court. But SACL later shot back with a two-page statement blaming the sale delays on Ansett's administrators.
SACL acknowledged it was seeking "performance security" from Tesna to cover aeronautical charges. It argued that "while other creditors are being offered security, airports, including Sydney, are being offered nothing".
SACL's chief executive Tony Stuart claimed it was now up to the administrators and Tesna to resolve the outstanding issues. He said they had failed to provide "vital information" about Tesna, including details about its shareholding and financial structure, funding arrangements and business plan.
It also claimed that despite several requests for information about Tesna, including letters on December 31 and January 17, Ansett's administrators did not initiate a meeting with SACL to discuss the Sydney lease transfer until January 17, just two weeks before the original sale deadline.
SACL claimed the administrators had "declined to discuss with us" a contingency plan to allow Tesna to use the Sydney terminal from February 1 until the sale was finalised.
In a brief statement, one of Ansett's administrators, Mark Korda, said that under the terms of the existing lease, the administration team had provided all the information necessary to get the Tesna transfer done. He was not available for further comment.
Tesna declined to comment, saying it would not conduct its commercial negotiations through the media.
Last night, the office of Finance Minister Nick Minchin was waiting for an update on the talks. But a spokeswoman said the government could not intervene.
[ 30 January 2002: Message edited by: Wirraway ]</p>
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Thurs "Sydney Morning Herald"
Knives drawn as Ansett and airport play blame game
By Darren Goodsir, Transport Writer
The dispute between Ansett's preferred owners and Sydney Airport soured last night as both sides blamed each other for the delay in approving terminal leases and clinching the airline's sale.
Sydney Airports Corporation's chief executive, Tony Stuart, accused the administrators of dragging their heels on talks.
Their tardiness, he said, was to blame for Tesna not being able to take control of Ansett.
But sources close to the deal said Tesna had baulked at providing information, with Sydney Airport wanting to give up the syndicate's secret business plans to parties trying to buy the airport.
Ansett's administrators, Mark Mentha and Mark Korda, told a meeting of creditors on Tuesday that the airline's sale to the Tesna syndicate could not be sealed - and was at risk of collapsing - because of legal and technical hitches.
They said the airport impasse was the biggest obstacle.
However, Mr Stuart hit back last night, saying it was "of great concern" that the administrators had not started negotiations until this month - despite being warned the deal would be a complex.
Neither Tesna nor the administrators had provided details on the new tenant's shareholders, directors, capital structure and funding arrangements.
This was standard information for such a transaction.
"Vital information necessary to complete due diligence of the proposed new tenant has not been forthcoming," he said.
"Sydney Airports Corporation is also committed to promoting a more competitive domestic aviation market. Thus, another key issue is ensuring excess capacity at the terminal is available to other carriers.
"Sydney Airport is not holding back the airline's operations."
The Tesna syndicate, headed by businessmen Solomon Lew and Lindsay Fox, has indicated to the administrators it is committed to the deal, but that the airport dispute is clouding a seamless transfer.
In the Federal Court, Simon Whelan, QC, acting for the administrators, said he would not be seeking judicial consent for the airline's sale until February 14, at the earliest - indicating a delay of a fortnight.
Mr Whelan said he might also be required to seek court guidance on resolving disputes between "third parties" and the administrators.
"A position arises, which is possible, where one of those parties happens to be an unsecured creditor as well and seeks to obtain for themselves the preference by way of transactions associated with Tesna," he said.
"We will not be agreeing to that unless the court gives us a direction that it's appropriate for us to do so."
Sydney Airport is an Ansett creditor - owed about $4 million in unpaid aviation fees.
Virgin Blue's head of commercial, David Huttner, said the airline had just won approval to expand its facilities in Sydney, Melbourne and Brisbane, and would not be seeking any space in Ansett terminals.
"We want to provide a better service to our customers and it is best achieved in this way," he said.
Meanwhile, groups representing disaffected frequent flyers yesterday called a week-long halt to their campaign to gain a better return on their frozen Global Rewards points. They are waiting to meet administrators, who have pledged to review a value of $140 million given to the 70 billion points, rendered virtually worthless since the airline's grounding.
[ 30 January 2002: Message edited by: Wirraway ]</p>
Knives drawn as Ansett and airport play blame game
By Darren Goodsir, Transport Writer
The dispute between Ansett's preferred owners and Sydney Airport soured last night as both sides blamed each other for the delay in approving terminal leases and clinching the airline's sale.
Sydney Airports Corporation's chief executive, Tony Stuart, accused the administrators of dragging their heels on talks.
Their tardiness, he said, was to blame for Tesna not being able to take control of Ansett.
But sources close to the deal said Tesna had baulked at providing information, with Sydney Airport wanting to give up the syndicate's secret business plans to parties trying to buy the airport.
Ansett's administrators, Mark Mentha and Mark Korda, told a meeting of creditors on Tuesday that the airline's sale to the Tesna syndicate could not be sealed - and was at risk of collapsing - because of legal and technical hitches.
They said the airport impasse was the biggest obstacle.
However, Mr Stuart hit back last night, saying it was "of great concern" that the administrators had not started negotiations until this month - despite being warned the deal would be a complex.
Neither Tesna nor the administrators had provided details on the new tenant's shareholders, directors, capital structure and funding arrangements.
This was standard information for such a transaction.
"Vital information necessary to complete due diligence of the proposed new tenant has not been forthcoming," he said.
"Sydney Airports Corporation is also committed to promoting a more competitive domestic aviation market. Thus, another key issue is ensuring excess capacity at the terminal is available to other carriers.
"Sydney Airport is not holding back the airline's operations."
The Tesna syndicate, headed by businessmen Solomon Lew and Lindsay Fox, has indicated to the administrators it is committed to the deal, but that the airport dispute is clouding a seamless transfer.
In the Federal Court, Simon Whelan, QC, acting for the administrators, said he would not be seeking judicial consent for the airline's sale until February 14, at the earliest - indicating a delay of a fortnight.
Mr Whelan said he might also be required to seek court guidance on resolving disputes between "third parties" and the administrators.
"A position arises, which is possible, where one of those parties happens to be an unsecured creditor as well and seeks to obtain for themselves the preference by way of transactions associated with Tesna," he said.
"We will not be agreeing to that unless the court gives us a direction that it's appropriate for us to do so."
Sydney Airport is an Ansett creditor - owed about $4 million in unpaid aviation fees.
Virgin Blue's head of commercial, David Huttner, said the airline had just won approval to expand its facilities in Sydney, Melbourne and Brisbane, and would not be seeking any space in Ansett terminals.
"We want to provide a better service to our customers and it is best achieved in this way," he said.
Meanwhile, groups representing disaffected frequent flyers yesterday called a week-long halt to their campaign to gain a better return on their frozen Global Rewards points. They are waiting to meet administrators, who have pledged to review a value of $140 million given to the 70 billion points, rendered virtually worthless since the airline's grounding.
[ 30 January 2002: Message edited by: Wirraway ]</p>
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Thurs "Australian Financial Review"
Legal threats fly as Ansett's airport row escalates. .Jan 31. .Simon Evans and Katherine Towers
. .Ansett's administrators have threatened court action against any party that tries to take advantage of the delay to Tesna's $3 billion rescue deal, as the Sydney Airport Corporation Ltd claimed the syndicate was denying it key details about its business plan.
SACL wants to know how Tesna will operate Ansett and whether its plan is sustainable so it can determine if it will allow the syndicate to link Ansett's terminal lease to workers' entitlements.
The row over the terminal, which is delaying Tesna's acquisition for up to 30 days, escalated as it emerged that the administrators, Mr Mark Mentha and Mr Mark Korda of Andersen, are considering suing former Ansett administrators PricewaterhouseCoopers for shutting the airline last September.
Mr Mentha and Mr Korda are investigating whether the two-week grounding contributed to Qantas and Virgin Blue taking large chunks of market share from Ansett and damaged the airline's value.
The threat of court action to protect the rescue package is believed to have been sparked by concerns that suppliers and creditors could seek to use the delay in the Tesna deal to impose tougher terms on Ansett.
Lawyers for the administrators foreshadowed the action during a Federal Court application in Melbourne to allow the administrators to continue trading and negotiating on behalf of the company despite ongoing weekly losses of $6 million.
Ansett's lawyers said the administrators would not bow to pressure from anyone seeking to use their position to gain preferential treatment as unsecured creditors.
Mr Simon Whelan QC told Justice Susan Kenny the situation was very "likely to arise in the next [few] days".
"The present situation involves a large number of other parties, and I don't have any particular party in mind, who one way or another have to consent or agree to take steps in order to enable the Tesna transaction to be consummated," Mr Whelan said.
Meanwhile, SACL suggested yesterday that if all the information requested on the future financial and capital structure of Ansett was furnished by Tesna and was deemed satisfactory, then the Sydney airport domestic terminal lease could be used as security against workers' entitlements in a matter of days.
A copy of a letter sent to Andersen on January 8 by Sydney airport's head of property and development, Mr Colin Grove, obtained by The Australian Financial Review listed 12 separate pieces of information required by SACL.
The requests included full details of Tesna's ownership and shareholding and directors, details of Tesna's financial capability and, if it was proposed that a financier or another person would be taking security over any of the leases or assets of Ansett at Sydney airport, then details of the financier's requirements needed to be provided.
SACL also demanded in the letter an explanation as to Tesna's "apparent desire to be able to pick and choose assets and leases it wants, and at the same time to receive the benefit of all grandfathered rights previously enjoyed by Ansett".
The Tesna syndicate is made up of Melbourne businessmen Mr Lindsay Fox and Mr Solomon Lew and US airline investors Mr David Bonderman and Mr Bill Franke.
SACL chief executive Mr Tony Stuart said yesterday the organisation had been "extremely pro-active" in its approach and had offered an interim arrangement where Tesna could operate from the Sydney domestic terminal from February 1 on a temporary basis, until the assignment was finalised.
SACL had been greatly concerned that the administrators only organised a meeting to discuss the issue two weeks ago.
Mr Stuart said it appeared the administrators had been "overstretched".
But Mr Korda said last night Andersen believed that under the terms of the existing lease between Ansett and SACL "we have provided all the information needed to effect a transfer of the lease to the Tesna consortium".
The administrators would continue to work with SACL to expedite the process.
Under the SACL charter, it is obliged to thoroughly investigate the financial capabilities of any new entity that wants to operate an airline and use the terminal, even though Ansett already holds the lease.
Diner's Club and the Global Rewards Action Group have agreed to wait until the details of Tesna's new frequent-flyer program are released before they try to negotiate a better deal from the administrators for 67 billion frequent-flyer points, which were assigned a value of $140 million for the creditors' meeting.
. .--------------------------------------------------------------------------------
Legal threats fly as Ansett's airport row escalates. .Jan 31. .Simon Evans and Katherine Towers
. .Ansett's administrators have threatened court action against any party that tries to take advantage of the delay to Tesna's $3 billion rescue deal, as the Sydney Airport Corporation Ltd claimed the syndicate was denying it key details about its business plan.
SACL wants to know how Tesna will operate Ansett and whether its plan is sustainable so it can determine if it will allow the syndicate to link Ansett's terminal lease to workers' entitlements.
The row over the terminal, which is delaying Tesna's acquisition for up to 30 days, escalated as it emerged that the administrators, Mr Mark Mentha and Mr Mark Korda of Andersen, are considering suing former Ansett administrators PricewaterhouseCoopers for shutting the airline last September.
Mr Mentha and Mr Korda are investigating whether the two-week grounding contributed to Qantas and Virgin Blue taking large chunks of market share from Ansett and damaged the airline's value.
The threat of court action to protect the rescue package is believed to have been sparked by concerns that suppliers and creditors could seek to use the delay in the Tesna deal to impose tougher terms on Ansett.
Lawyers for the administrators foreshadowed the action during a Federal Court application in Melbourne to allow the administrators to continue trading and negotiating on behalf of the company despite ongoing weekly losses of $6 million.
Ansett's lawyers said the administrators would not bow to pressure from anyone seeking to use their position to gain preferential treatment as unsecured creditors.
Mr Simon Whelan QC told Justice Susan Kenny the situation was very "likely to arise in the next [few] days".
"The present situation involves a large number of other parties, and I don't have any particular party in mind, who one way or another have to consent or agree to take steps in order to enable the Tesna transaction to be consummated," Mr Whelan said.
Meanwhile, SACL suggested yesterday that if all the information requested on the future financial and capital structure of Ansett was furnished by Tesna and was deemed satisfactory, then the Sydney airport domestic terminal lease could be used as security against workers' entitlements in a matter of days.
A copy of a letter sent to Andersen on January 8 by Sydney airport's head of property and development, Mr Colin Grove, obtained by The Australian Financial Review listed 12 separate pieces of information required by SACL.
The requests included full details of Tesna's ownership and shareholding and directors, details of Tesna's financial capability and, if it was proposed that a financier or another person would be taking security over any of the leases or assets of Ansett at Sydney airport, then details of the financier's requirements needed to be provided.
SACL also demanded in the letter an explanation as to Tesna's "apparent desire to be able to pick and choose assets and leases it wants, and at the same time to receive the benefit of all grandfathered rights previously enjoyed by Ansett".
The Tesna syndicate is made up of Melbourne businessmen Mr Lindsay Fox and Mr Solomon Lew and US airline investors Mr David Bonderman and Mr Bill Franke.
SACL chief executive Mr Tony Stuart said yesterday the organisation had been "extremely pro-active" in its approach and had offered an interim arrangement where Tesna could operate from the Sydney domestic terminal from February 1 on a temporary basis, until the assignment was finalised.
SACL had been greatly concerned that the administrators only organised a meeting to discuss the issue two weeks ago.
Mr Stuart said it appeared the administrators had been "overstretched".
But Mr Korda said last night Andersen believed that under the terms of the existing lease between Ansett and SACL "we have provided all the information needed to effect a transfer of the lease to the Tesna consortium".
The administrators would continue to work with SACL to expedite the process.
Under the SACL charter, it is obliged to thoroughly investigate the financial capabilities of any new entity that wants to operate an airline and use the terminal, even though Ansett already holds the lease.
Diner's Club and the Global Rewards Action Group have agreed to wait until the details of Tesna's new frequent-flyer program are released before they try to negotiate a better deal from the administrators for 67 billion frequent-flyer points, which were assigned a value of $140 million for the creditors' meeting.
. .--------------------------------------------------------------------------------
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News.com:
Airport defends lease stand. . . .From AAP. .31jan02
SYDNEY Airport has defended its tough stand on Ansett's leasing arrangements saying it wanted to ensure it knew who would be taking over the contract.
. .Problems transferring the airport lease threaten to scuttle administrators high profile plans to sell the airline to the Tesna syndicate owned by Melbourne businessmen Solomon Lew and Lindsay Fox.
Sydney Airport Corporation Ltd (SACL) spokesman Peter Gibbs said one of the sticking points, a performance bond requested by the airport, was not new and had been received from all new airline and commercial tenants, including Impulse and Virgin Blue.
Mr Gibbs refused to say how much the bond was worth but said it was not the $20 million reported today.
Mr Gibbs said other hurdles came from Tesna and administrators who had yet to provide the airport with vital details over who would taking over the lease.
There was a concern the lease could be transferred not to Tesna as expected but to a related holding company on the side, he said.
"We want a definition of who's taking on the lease and need to do due diligence on those parties," Mr Gibbs said.
Other airport including Melbourne and Brisbane are also waiting for similar information to finalise leasing arrangements.
Sydney was identified as the major hurdle to the sale because of its value.
Ansett completed $160 million refurbishment of its Sydney terminal before the Sydney Olympics.
Union sources said Tesna considered the airport the "jewel in the Ansett crown" and would walk away from the sale deal if the lease was not completed.
The lease was also part of the company's deal with unions and was to be used to secure $244 million in employee entitlements.
The airports are using the lease changeover to alter lease conditions.
Administrators and unions are seeking legal advice over whether this is acceptable.
Mr Gibbs said the change in leases was natural given the new company was an unknown and the lease had another 17 years to run.
Sydney Airport was seeking third party access to Ansett terminals which were not in use.
Similar provisions had been written into the Ansett lease in the 1980s and early 1990s when the two Compass airlines sought access to airport gates.
"We are vigorously pursuing Tesna as an airline client at Sydney airport and are keen to ensure there is more a competitive aviation market here in Australia," Mr Gibbs said.
He said the two goals were no at odds.
A spokeswoman for Australian Pacific Airports Corporation, Melbourne, (APAC) trading as Melbourne Airport, said Ansett administrators were first contacted in October last year to sort out lasing arrangements and identify information needed for any transferral.
Ansett administrators are also having delays finalising the transferral of leases for aircraft and computer equipment.
Airport defends lease stand. . . .From AAP. .31jan02
SYDNEY Airport has defended its tough stand on Ansett's leasing arrangements saying it wanted to ensure it knew who would be taking over the contract.
. .Problems transferring the airport lease threaten to scuttle administrators high profile plans to sell the airline to the Tesna syndicate owned by Melbourne businessmen Solomon Lew and Lindsay Fox.
Sydney Airport Corporation Ltd (SACL) spokesman Peter Gibbs said one of the sticking points, a performance bond requested by the airport, was not new and had been received from all new airline and commercial tenants, including Impulse and Virgin Blue.
Mr Gibbs refused to say how much the bond was worth but said it was not the $20 million reported today.
Mr Gibbs said other hurdles came from Tesna and administrators who had yet to provide the airport with vital details over who would taking over the lease.
There was a concern the lease could be transferred not to Tesna as expected but to a related holding company on the side, he said.
"We want a definition of who's taking on the lease and need to do due diligence on those parties," Mr Gibbs said.
Other airport including Melbourne and Brisbane are also waiting for similar information to finalise leasing arrangements.
Sydney was identified as the major hurdle to the sale because of its value.
Ansett completed $160 million refurbishment of its Sydney terminal before the Sydney Olympics.
Union sources said Tesna considered the airport the "jewel in the Ansett crown" and would walk away from the sale deal if the lease was not completed.
The lease was also part of the company's deal with unions and was to be used to secure $244 million in employee entitlements.
The airports are using the lease changeover to alter lease conditions.
Administrators and unions are seeking legal advice over whether this is acceptable.
Mr Gibbs said the change in leases was natural given the new company was an unknown and the lease had another 17 years to run.
Sydney Airport was seeking third party access to Ansett terminals which were not in use.
Similar provisions had been written into the Ansett lease in the 1980s and early 1990s when the two Compass airlines sought access to airport gates.
"We are vigorously pursuing Tesna as an airline client at Sydney airport and are keen to ensure there is more a competitive aviation market here in Australia," Mr Gibbs said.
He said the two goals were no at odds.
A spokeswoman for Australian Pacific Airports Corporation, Melbourne, (APAC) trading as Melbourne Airport, said Ansett administrators were first contacted in October last year to sort out lasing arrangements and identify information needed for any transferral.
Ansett administrators are also having delays finalising the transferral of leases for aircraft and computer equipment.
