September 16, 2002
ADMINISTRATORS OUTLINE CONDITIONAL PLAN FOR MORE ANSETT REDUNDANCY MONEY Former Ansett staff would receive quarterly installments of further redundancy payments starting this Christmas under proposals in the administrators� latest report released today.
But after five months of rapid asset realization (since the airline�s final flight on 4 March, 2002) the administrators ability to make the payments depends on the outcome of court proceedings brought by trustees of one of the airline�s superannuation funds � potentially a cost of up to $200 million which would need to be paid from administration proceeds.
Ansett administrators, Mark Korda and Mark Mentha, today released their 50
page Outlined in Third Report are an update on the administration, asset realisations to date, an estimated return to creditors, and advice on investigations being undertaken by the administrators. The latest estimate of total gross employee entitlements is $735.8 million, a slight increase on the previous estimate. To date, the administrators have paid former staff more than $370 million in employee entitlements including:
If by December, the superannuation proceedings are resolved in favour of the
administrators, they have forecast the payment of further redundancy monies*
in quarterly instalments commencing prior to Christmas, 2002: * For redundancies greater than 8 weeks The payments would take the cumulative payment of annual leave, long service leave, payment in lieu of notice and redundancy to 62 cents in the dollar. The administrators also confirmed they continue to aim over time, to deliver total cumulative payments of up to 92 cents in the dollar in redundancy payments, but warn this will not happen if there is an adverse result in the pending court action and if sales of remaining assets (including 47 aircraft for sale in the currently depressed world aircraft) do not reach estimated target values. In the 12 months since Ansett�s collapse the administration has raised $630 million gross
($98.1 million of assets sold are pending settlement). Office furniture, IT and PC equipment sold through major auctions Ansett vehicles, trucks, tugs, airport ground service vehicles Surplus engineering equipment not required for maintenance of remaining aircraft fleet. Yet to be sold are:
The Third Report to Creditors will be posted this evening at
www.ansett.com.au/administrator and
www.abl.com.au/administrator
.
For further information contact the Ansett Administration Media Office 03 9623 3450.
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