News : Our Entitlements 1
September 16, 2002
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
"Third Report to Creditors" in advance of the Third Meeting of Creditors, to be held at the Melbourne Exhibition and Convention Centre at 11 am on 25 September. The first and second Reports to Creditors were published on 16 January, 2002 and 15 March, 2002 respectively.
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:
100% of their annual leave monies unpaid at the time of the Group’s collapse;
100% of accrued long service leave unpaid at the time of the Group’s collapse
100% of pay in lieu of notice, "Z" days and other days owed as applicable
An initial across the board 8 week redundancy payment
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:
Instalment 1 - 10 cents by Christmas, 2002
Instalment 2 - five cents by March, 2003
Instalment 3 - five cents by June, 2003
* 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).
Sold are:
Ansett’s interests in major domestic airport terminals - Sydney, Melbourne, Brisbane, Adelaide, Perth, Canberra, Launceston, Hobart
Ansett interests in regional and other airports
78 aircraft have been sold, leased or redelivered
Ansett freehold property including land, buildings, Melbourne headquarters and a number of special purpose facilities
Subsidiary businesses including:
Kendell Airlines
Hazelton airlines
Ansett International Cargo Handling Pty Ltd
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:
43 aircraft including Boeing 767s, Airbus A320s, British Aerospace BAE146s
A further 13 aircraft currently under negotiation
Simulators, engines, spare parts and rotables
Remaining property interests
The Ansett Australia brand, and other trademarks and brand names owned by the Ansett Group
A collection of more than 5000 pieces of original memorabilia  

The Third Report to Creditors will be posted this evening at  and .

  For further information contact the Ansett Administration Media Office 03 9623 3450.