Kendell/Hazo's - who is going to buy them?
 

Does anyone know who the current bidders are and what is the state of play.

Ice.

It's all very (too?) quiet don't you think....if AN is losing 6 mill a week, I wonder what the books are like at the Reqionals?

The 2-3 week message has been around for about 2 months now!!!

Hazo's and Kendell to merge and be sold is the one I heard. But I also heard Kendell is not doing very well at all, hope they dont drag Hazo's down with them.

Fact folks.........seen the KD Profit / loss sheet...............in the black

A more relevant fact......Arthur Andersen's report to creditors calculated the Kendell total debt burden as $554 million.

There aren't enough regional customers in all of Australia to enable a prospective new owner of Kendell to generate the revenue necessary to service such a debt!! Let alone make a profit this side of the year 2025!!

The Oracle

KYBO

Sorry to burst your bubble chum but no you didn't see any profit on a current KD balance sheet. There being hit hard and I can tell you if they were making a profit that airline would have been weell and truelly sold by now.

That company is laiden with massive debt in the form of 12 jets that are not earning $1 in revenue, and the lease payments still have to be made. Take it from me, the future is not pretty for KD in its present form. <img src="frown.gif" border="0">

Soup Nazi.. .As of a month ago, KD's were break even, with a dribble of black ink.(February, however may make this trend difficult to continue). Those pre Sept. debts are nothing to do with a prospective buyer.. .Secondly, No-one will buy KD's (or even Zl's) for that matter until TESNA are actually operating, As they will be responsible for up to 30% of KD business.

Only then will we see how desirable any of the remaining regionals are to interested parties.

NTLB Duck

Why will AN be responsible for 30% OF KD'S income, I havent heard Tesna commit to that one yet. In fact I havent heard Tesna commit to anything yet!

You may of course know something I dont. :)

Heard today the 2-3 week message may have blown out to 5-6 MONTHS? <img src="confused.gif" border="0">

Soup Nazi. .I could have been a little more precise. Pre-Sept 2001, KD's received an on-carriage of approx. 30% from Ansett. This was a large part of the regional's income, and would have an influence on the 'value' of KD's. Therefore, any potential buyer of KD's will be intensly interested in the success of TESNA before naming their offer.

Tesna and Virgin???

Oracle,

When you "buy" a business out of VA or Liquidation, you do not usually inherit the debt; which is why unsecured creditors do not get 100% of their entitlement. The debt is resolved or no-one would buy it!

If the debt were $554M you could start the airline from scratch for less. <img src="smile.gif" border="0">