Ansett administrators to leave Andersen
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Ansett administrators to leave Andersen
AAP
Ansett administrators to leave Andersen
The high-profile Andersen Australia partners handling the Ansett administration will jump ship when the accounting firm merges with Ernst & Young.
Mark Korda and Mark Mentha - known as the Two Marks - will leave Andersen on May 15 to establish their own practice, a boutique recovery specialist.
They will take the Ansett account with them, guaranteeing themselves at least six months work as they attempt to dispose of the failed airline's assets.
The departure date coincides with the proposed date for the formal signing of an integration agreement between Andersen and Ernst & Young.
However, Andersen said in a statement their departure was "amicable" and not linked to recent moves.
It said the pair wanted to work in "an autonomous specialist environment".
An earlier report on the Crikey.com.au website claimed they had baulked at paying $400,000 each to remain partners after Andersen merged with Ernst & Young.
According to Crikey.com.au, the men were poised to bring an estimated $65 million in fees over the next two years to the accounting firm.
A report to Ansett creditors last month indicated the men had already taken nearly $20 million from the Ansett administration.
The new company KMC Pty Ltd (Korda Mentha and Colleagues) will also retain other administrations including Bradmills, Nonreferral Recycling, and Vivianne's.
The Ansett administration was a personal administration appointed by the Federal Court, a spokeswoman said today.
"Because it was a personal appointment the split will have no impact on the Ansett Group administration," she said.
KMC would retain affiliations with Ernst & Young and would continue to draw resources and staff from the company as its client, Mr Mentha said.
Mr Mentha said KMC would be registered as a professional services consulting house in competition with the likes of KPMG.
The pair were hired with ACTU blessing to take over as Ansett administrators when PricewaterhouseCoopers stood down on September 14 last year.
An Ansett creditors' meeting last month rejected moves to liquidate the airline's remaining assets but voted in favour of an inquiry into the administrators' conduct after criticism from some quarters that they were too close to the unions.
The loss of Mr Mentha and Mr Korda will be a major blow to Andersen, which went looking for suitors after its US parent Arthur Andersen was indicted for obstruction of justice.
The local firm had faced criticism for its role in the collapse of HIH Insurance's $5 billion-plus collapse. Its involvement with HIH, prevented a link with KPMG's Australian arm because of conflict of interest fears.
Some of Australia's biggest corporate names, such as News Ltd and BHP Billiton Ltd, are affected by the takeover of Andersen Australia and will have to decide whether to remain clients of the merged entity.
Ansett administrators to leave Andersen
The high-profile Andersen Australia partners handling the Ansett administration will jump ship when the accounting firm merges with Ernst & Young.
Mark Korda and Mark Mentha - known as the Two Marks - will leave Andersen on May 15 to establish their own practice, a boutique recovery specialist.
They will take the Ansett account with them, guaranteeing themselves at least six months work as they attempt to dispose of the failed airline's assets.
The departure date coincides with the proposed date for the formal signing of an integration agreement between Andersen and Ernst & Young.
However, Andersen said in a statement their departure was "amicable" and not linked to recent moves.
It said the pair wanted to work in "an autonomous specialist environment".
An earlier report on the Crikey.com.au website claimed they had baulked at paying $400,000 each to remain partners after Andersen merged with Ernst & Young.
According to Crikey.com.au, the men were poised to bring an estimated $65 million in fees over the next two years to the accounting firm.
A report to Ansett creditors last month indicated the men had already taken nearly $20 million from the Ansett administration.
The new company KMC Pty Ltd (Korda Mentha and Colleagues) will also retain other administrations including Bradmills, Nonreferral Recycling, and Vivianne's.
The Ansett administration was a personal administration appointed by the Federal Court, a spokeswoman said today.
"Because it was a personal appointment the split will have no impact on the Ansett Group administration," she said.
KMC would retain affiliations with Ernst & Young and would continue to draw resources and staff from the company as its client, Mr Mentha said.
Mr Mentha said KMC would be registered as a professional services consulting house in competition with the likes of KPMG.
The pair were hired with ACTU blessing to take over as Ansett administrators when PricewaterhouseCoopers stood down on September 14 last year.
An Ansett creditors' meeting last month rejected moves to liquidate the airline's remaining assets but voted in favour of an inquiry into the administrators' conduct after criticism from some quarters that they were too close to the unions.
The loss of Mr Mentha and Mr Korda will be a major blow to Andersen, which went looking for suitors after its US parent Arthur Andersen was indicted for obstruction of justice.
The local firm had faced criticism for its role in the collapse of HIH Insurance's $5 billion-plus collapse. Its involvement with HIH, prevented a link with KPMG's Australian arm because of conflict of interest fears.
Some of Australia's biggest corporate names, such as News Ltd and BHP Billiton Ltd, are affected by the takeover of Andersen Australia and will have to decide whether to remain clients of the merged entity.
