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2 April 2007

Ansett Administrators Release Seventh Report to Creditors

The Ansett Administrators, KordaMentha, today released the Seventh Report to Creditors. Copies of the Report are available at and

Mr Korda and Mr Mentha said that during 2006, a total of $60.8 million in assets had been realised. This was higher than anticipated. Over 95 per cent of assets have now been realised.

The Administrators paid three dividends during 2006. The fifth, sixth and seventh dividends totalled $132.5m of which $80.6m was paid to employees.

To date, employees have received $667 million in entitlements of a total owing of $760 million.

Significantly, the Administrators said they have now been able to further increase the net asset realisation estimate by $30 million from $640 million to $670 million as a result of higher than previously budgeted asset realisations to date, higher than previously budgeted estimated future asset realisations, lower than budget costs to date and elimination or mitigation of contingent claims.

Mr Korda estimates employees will receive a further $21.7m, to be paid over the next few years. This means each employee will receive 23% of their current outstanding balance. Accordingly, the Administrators anticipate total payments of $688.6m of the $760.0m of total employee entitlements owed (approximately 90.6 cents in the dollar on average).

The Administrators will:

  • continue to sell the nine million spare parts;
  • collect in amounts still owing from travel agents and pursue legal actions; and
  • collect aircraft lease revenue and realise the remaining assets
  • in order to pay further dividends to priority creditors over the next few years.


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    31 August 2006

    Further Payments to Ansett Staff

    Ansett Administrators Mark Korda and Mark Mentha announced today a sixth dividend of $76.9 million will be paid next Thursday 7 September 2006.

    The sixth dividend brings to $650.5 million the total payments made to Ansett’s 15,000 former staff.

    Mr Korda said meetings of creditors took place today. Ansett Group creditors approved pooling resolutions across 40 of the Ansett Group companies and trusts. The Ansett Group has now been pooled in its entirety.

    Pooling is a shorthand way of describing the legal process which enables the assets and liabilities of some or all of the companies in an insolvent group of related companies to be merged into one of those companies, thereby simplifying the administration of the insolvent group of related companies.

    The pooling of the 40 Ansett Group companies and trusts together with further asset sales has made payment of the dividend possible.

    Mr Korda said: “The sixth dividend payment is 30% of each employee’s outstanding entitlements. It is an average of approximately $5,000 per employee, with some employees receiving more than $49,000.” Payments by electronic transfer will be made next Thursday, 7 September 2006.

    The sixth dividend consists of $46.9 million to former Ansett employees and $30.0 million to the Federal Government to repay staff entitlements previously paid under the Commonwealth SEESA scheme.

    Ansett continues to sell off its spare parts inventory and the remaining assets. There is in excess of 9 million units of inventory across 217,000 line items to be sold, four aircraft and two remaining properties.

    Further dividends will be paid over the next one to two years, dependent on further asset realisations.

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    3 April 2006

    Ansett Administrators Release Sixth Report to Creditors

    The Ansett Administrators, KordaMentha, today released the Sixth Report to Creditors. Copies of the report are available here

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    1 April 2005

    Ansett Administrators Release Fifth Report to Creditors

    The Ansett Administrators, KordaMentha, today released the Fifth Report to Creditors. Copies of the Report are available at and

    Mr Korda and Mr Mentha said that during 2004, a total of $113 million in assets had been realised. This was $26 million higher than anticipated. They said that to date about 90 per cent of assets, other than aircraft, had been realised.

    To date, employees had received $564.1 million in entitlements of a total owing of $760 million. The Administrators said the returns to employees were dependent on “pooling” or combining the assets and liabilities of all 39 Ansett entities under administration, so that the Ansett Group would be treated as if it were one entity.

    They said that based on best estimates the “pool” would allow about $663 million to be returned to employees of their total entitlements of $760 million. Without “pooling”, the worst case scenario was that an estimated $70 million would not be available for distribution to employees.

    They said “pooling” would need to be approved at creditors meetings, by the Federal Court or both. The Administrators said it could take to the end of 2005 before the “pooling” scheme was finalised. Mr Korda and Mr Mentha said that no further large distributions could be made until the issue of “pooling” was resolved. But, they said a further dividend of about half of the 35% outstanding to employees could be made immediately on approval of the “pooling” scheme.

    The Administrators said: “The returns are a best estimate only but there are still major risks and hurdles to overcome such as the resolution of the ‘pooling’ issue before the exact returns can be finalised.” Apart from the “pooling” issue, these risks included the state of the world aviation market, the actual and final realisation of assets, any unforeseen additional claims, exchange rate variations and resolution of litigation and disputes.

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    15 December 2004

    More payments to Ansett Staff from tonight

    Ansett Administrators Mark Korda and Mark Mentha today confirmed the payment commencing from midnight tonight, of a further $16.0m to the former Ansett employees; and $10.4m to the Commonwealth in the latest $26.4 million distribution from the sale of Ansett assets.

    The bank accounts of eligible former employees throughout Australia and overseas will be credited with the funds by electronic payment. The majority of payments are expected to be received within the next few days depending on bank processes and employee locations.

    Following the sale of more than 90 percent of Ansett assets, the distribution is the third dividend paid to employees by the administrators, and will mean $562.8 million of the total $760.0 million redundancy owed to Ansett's 15,000 former staff will have been paid.

    Over 3000 employees with shorter length of service have received 100% of entitlements owing to them via the SEESA (Special Employee Entitlements for Ansett Staff) scheme agreed between the administrators and the Commonwealth.

    "This remains a complex administration with large contingencies, both assets and liabilities, that are yet to be resolved and whilst it is difficult to predict ultimate outcomes, we aim to deliver approximately a further $70 million to employees, " said Mark Korda.

    "If we achieve this, we are hopeful of delivering $632.7million of the $760.0 million total owed to employees, " he said.

    Significant recent events include:

    • Sale of Ansett's six 767-200 aircraft
    • Sale of all remaining aircraft engines
    • Sale of Kendell's remaining aircraft
    • Sale of the Ansett engine shop
    • Sale of the flight simulator centre
    • Subdivision of 20 hectares of land at Tullamarine and sale of 9 of the 10 allotments
    • Final receipts of funds from the sale of the Ansett Aviation Spares and Service Management Buy Out in the United States
    • Final receipt of funds from the sale of the Ansett Perth Terminal
    • Payment of approximately $100 million to the employees and the Commonwealth Government during 2004.
    Significant assets that are yet to be realised include:
    • 2x Airbus A320 (both aircraft are on lease)
    • 14x British Aerospace BAe 146 aircraft
    • Pre-Administration Debtors
    • Miscellaneous Plant and Equipment
    • Ansett's Maintenance Base and Supply Centre, currently in use
    • Aircraft spare parts


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    2 April 2004

    Ansett Administration Report Released

    Ansett Administrators Mark Korda and Mark Mentha today released a 30-page report detailing the status of the ongoing administration of the Ansett Australia Group of 39 companies.

    Of total employee entitlements owed at the time of the company's collapse, (currently estimated at $766.4m), the administrators have now distributed $547.7m to former Ansett employees.

    Realisations and returns from Ansett assets are currently ahead of projections and now total (net) $490.3m, approximately $30m more than estimated in Third Report to Creditors.

    The above budget result is due to maximisation strategies and greater than expected returns from sales of aircraft parts, property, and recovery of debts owed to the company at the time of its collapse.

    "We would like to particularly thank the continuing employees that have worked hard in difficult circumstances to deliver this result," said Mark Korda.

    "We will be seeking to recover an estimated further $102.1m from remaining Ansett assets, and $70 million from aircraft," he said.

    "The current value of the aircraft is well below previous valuations, due to the state of the global aviation market."

    "We estimate employees may yet receive approximately a further $85 million, with payment to commence in 2005," said Mark Korda.

    To enable employees to receive a large dividend payment on 10 December 2003, the Commonwealth Government deferred payment of $67m due to it.

    The Commonwealth Government advanced the Administrators through the SEESA scheme $334.9m, of which $159.5m has been repaid. Of the $67m deferred by the Commonwealth Government, $49.2m remains to be paid prior to any further distributions to employees. It is expected the Commonwealth Government will receive $273.2m in total.

    The major matter resolved since the Third Report to Creditors was the settlement of the legal action taken against Ansett Australia Limited (AAL) by the Trustees of the Ground Staff Superannuation Plan. The Trustees were seeking AAL to pay up to $200m to the members of the Ground Staff Superannuation Plan, rather than to employees of AAL.

    The matter was resolved on 25 November 2003 with settlement favourable for employees.

    The Fourth Report to Creditors of the Ansett Group of Companies is available on (under creditor information tab). A further 51 interim update reports have been issued by the administrators to the Committees of Creditors and 23 update newsletters to the airline company's former employees.

    Listing of Companies for which the Report has been prepared
    501 Swanston Street Pty Ltd
    (ACN 005 477 618)
    Airport Terminals Pty Ltd
    (ACN 053 976 444)
    Aldong Services Pty Ltd
    (ACN 000 258 113)
    Ansett Aircraft Finance Limited
    (ACN 008 643 276)
    Ansett Aviation Equipment Pty Ltd
    (ACN 008 559 733)
    Ansett Australia Limited
    (ACN 004 209 410)
    Ansett Australia and Air New Zealand Engineering Services Limited
    (ACN 089 520 696)
    Ansett Australia Holdings Limited
    (ACN 004 216 291)
    Ansett Carts Pty Ltd
    (ACN 055 181 215)
    Ansett Equipment Finance Limited
    (ACN 006 827 989)
    Ansett Finance Limited
    (ACN 006 555 166)
    Ansett Holdings Limited
    (ACN 065 117 535)
    Ansett International Limited
    (ACN 060 622 460)
    Bodas Pty Ltd (including in its capacity as trustee of the Westsky Trust and the Pelican Trust)
    (ACN 002 158 741)
    Brazson Pty Ltd
    (ACN 055 259 008)
    Eastwest Airlines (Operations) Limited
    (ACN 000 259 469)
    Eastwest Airlines Limited
    (ACN 000 063 972)
    ANST Lednek Airlines (Aust) Pty Ltd (Formerly Kendell Airlines (Aust) Pty Ltd)
    (ACN 000 579 680)
    Morael Pty Ltd
    (ACN 003 286 440)
    Northern Airlines Limited
    (ACN 009 607 069)
    Northern Territory Aerial Work Pty Ltd
    (ACN 009 611 321)
    Rock-It-Cargo (Aust) Pty Ltd
    (ACN 003 004 126)
    ANST Show Pty Ltd
    (Formerly Show Group Pty Ltd)
    (ACN 002 968 989)
    South Centre Maintenance Pty Ltd
    (ACN 007 286 660)
    Spaca Pty Ltd
    (ACN 006 773 593)
    ANST Travel Pty Ltd
    (Formerly Traveland Pty Ltd)
    (ACN 000 240 746)
    ANST Travel International Pty Ltd
    (Formerly Traveland International Pty Ltd)
    (ACN 000 598 452)
    Traveland International (Aust) Pty Ltd
    (ACN 000 275 936)
    Traveland New Staff Pty Ltd
    (ACN 080 739 037)
    Walgali Pty Ltd
    (ACN 055 258 921)
    Westintech Limited
    (ACN 009 084 039)
    Westintech Nominees Pty Ltd
    (ACN 009 302 158)
    Whitsunday Affairs Pty Ltd
    (ACN 009 694 553)
    Whitsunday Harbour Pty Ltd
    (ACN 010 375 470)
    Wridgways (Vic) Pty Ltd
    (ACN 004 153 413)
    Wridgways Holdings Limited
    (ACN 004 449 085)
    ANST Westsky Aviation Pty Ltd (Formerly Skywest Aviation Pty Ltd)
    (ACN 004 444 866)
    ANST Westsky Jet Charter Pty Ltd (Formerly Skywest Jet Charter Pty Ltd)
    (ACN 008 800 155)
    ANST Westsky Holdings Pty Ltd (Formerly Skywest Holdings Pty Ltd)
    (ACN 008 905 646)
    (All Deed Administrators Appointed)


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    10 December 2003

    Ansett payments commence from midnight tonight

    Ansett Administrators Mark Korda and Mark Mentha tonight will commence transferring the first of $150 million of further redundancy payments to former Ansett staff throughout Australia.

    In what is believed to be Australia's largest ever insolvency distribution, electronic transfer payments will commence from midnight, depositing dividends raised from the sale of Ansett assets and businesses, into the bank accounts of former Ansett employees.

    The payments follow Federal Court approval only two weeks ago of an agreement which ended court proceedings brought against Ansett by one of the airline's five superannuation funds. Until the settlement, which followed three days of mediation involving the Commonwealth, the Trustees of the Ground Staff Superannuation Plan, the ACTU and the Ansett Administrators, the superannuation legal proceedings effectively blocked the Deed Administrators from making any further payments to employees.

    "Following settlement of the case, our immediate, single-minded focus was on payments before Christmas," said Mark Korda.

    "Considering the size and complexity of the distribution, our aim was to commence paying people by Christmas with the bulk of payments completed by the end of January," he said.

    "I am delighted to announce that two weeks on, we are well ahead of schedule. We expect to make payments to more than 90 percent of Ansett employees who are owed further entitlements immediately," he said.

    "This is due in no small part to an intense effort by the administration team which includes Ansett human resources and finance people and our own staff."

    "In the past fortnight Ansett staff have worked tirelessly with us to validate up to 13,000 individual calculations, and produce associated personalised financial statements and letters of advice."

    "We have also been contacted by thousands of former Ansett staff, many now relocated in Australia and overseas, wishing to advise their changed address and banking details," he said.

    As part of the settlement, the Commonwealth agreed to defer the payment of $67 million, which enabled the employees to be paid a total of $150 million. The Commonwealth was due $214 million and after the $67 million deferral, will be paid $147 million immediately.

    Payments made by the administrators from tonight will be made in accordance with the Superannuation Settlement and Orders of the Federal Court.

    At the time of the company's collapse, Ansett employees were owed a total of $760 million.

    To date employees have received $390 million. The $150 million distribution now commencing will deliver a total of $540 million to employees of the approximately $760 million owed.

    Mr Korda said the Ansett Administration would continue in an effort to achieve even more funds for creditors.

    "We will continue efforts to recover debts owed to Ansett and albeit in a very uncertain global aviation market, to realise remaining value in key aircraft and components," he said.

    Remaining Ansett assets include 27 aircraft, spare parts, and operating businesses including the Ansett Simulator Centre, the independent AAES Engineering Maintenance business and land and buildings near Melbourne airport.

    Ansett Employees can contact the administration via the Employee Hotline 1800 151 604 or by email to or can refer to the web site,


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    25 November 2003


    Ansett Administrators Mark Korda and Mark Mentha today sought and received Federal Court approval of an agreement which would clear the way for further payments to Ansett staff.

    The agreement considered by the Federal Court in Melbourne today was formulated during three days of mediation last week involving the key stakeholders - the Commonwealth, the Trustees of the Ground Staff Superannuation Plan, the ACTU and the Ansett Administrators.

    The agreement provides for a further $150 million to be paid to employees. Of the $150 million, $39 million will be paid to the Ground Staff Superannuation Plan members so as to cover their shortfall in vested benefits. The amounts paid will be deducted from their outstanding employee entitlements.

    "To facilitate this settlement, the Commonwealth has agreed to accept a lesser return as the single biggest creditor to the Ansett Administration, receiving $150 million immediately, whilst deferring $67 million of its priority repayment, so as to allow the Administrators to pay this dividend to former Ansett employees," said Mark Korda.

    The Commonwealth will receive its deferred $67 million at a later date from the future sale of assets - but before any further dividends are paid to employees.

    "This is a win for the Ansett employees." said Mark Korda.

    "Ansett employees are owed a total of $760 million," said Mark Mentha.

    "To date employees have received $390 million or an average of 52 cents in the dollar. This solution will deliver a total of $540 million or an average of 71 cents in the dollar."

    "Our intention would be to start making further redundancy payments to employees by Christmas. The process will be complex involving over 60 spreadsheets of calculations across 13,000 employees.

    "We currently have $400 million in the bank, the proceeds of asset and business sales. Of these funds $300 million will be distributed to the employees and to the Commonwealth. A further $50 million will be retained for working capital and $50 million relates to other companies in the group" he said.

    We will continue the process of realising assets albeit in a very uncertain global aviation market. Key assets remaining include 27 aircraft, spares, operating businesses such as the simulator centre, engine shop and heavy maintenance, property at Garden Drive and debtor realisations from legal actions.


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    24 March 2003


    Ansett Administrator Mark Korda said today the decision by the Trustees of the Ansett Ground Staff Superannuation Plan to appeal a Supreme Court ruling was "extremely regrettable", and will delay further payments to Ansett staff until the matter is fully resolved via Court process.

    The matter relates to proceedings taken against Ansett by one of the airline's five former Superannuation Funds. At issue is $200million of $360million held in the bank by the Ansett administrators.

    Ansett Administration, on behalf of all employees, won the case in the Supreme Court and judges orders were handed down on 7th February, 2003.

    "The Trustees of the Ground Staff Superannuation Plan on the advice of their lawyers, have today served notice to appeal the Supreme Court decision, delaying again further instalment payments to former Ansett staff," said Mark Korda.

    "This is an extremely frustrating position. Due to the Trustees decision to appeal we remain unable to distribute any part of $360 million on hand raised through asset sales and debt recoveries until this matter is fully resolved," Mark Korda said.

    "At issue is debate over whether we can distribute cash reserves fairly and equitably to 15,000 employees as redundancy dividends; or pay up to $200m to only 8700 members of one Ansett staff Super Plan."

    "Our aim as per our third Report to Creditors was to make three quarterly instalments, starting in December 2002, of 10%, 5% and 5% for amounts owing to employees of greater than 8 weeks redundancy.


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    27 November 2002


    Ansett Administrators KordaMentha announced today that they had settled the sale of the landmark Ansett Australia Headquarters complex at the northern end of Melbourne's CBD.

    The sale, to developers PDG Corporation, adds more than $30 million to the Ansett administration proceeds.

    The former Ansett properties were offered for sale by Berrick Wilson, Managing Director of KordaMentha Real Estate Advisory through agents Colliers International and Knight Frank with tenders closing 17 May.

    "During the tender process we received strong interest from developers and investors following approximately 70 formal inspections," he said.

    "We are pleased to have settled this major transaction with no delays. This is a significant transaction in the Ansett administration and staff on both sides of the transaction have worked very hard to ensure that the settlement deadlines were met with no delays" said Mr Wilson.

    "A huge amount of work was required by Ansett security staff to clear out the office buildings in readiness for handover to the new owners," he said.

    "This is an excellent outcome for all concerned, both in terms of achieving a significant contribution to the Ansett Australia Group Administration and also regarding the purchasers' plans for this landmark site in Melbourne's Central Business District". The deal comprises four buildings and a total land area of 7627 square metres with frontages to Swanston Street, Therry Street, Victoria Street and Franklin Street.

    The buildings include the octagonal 18 level former Ansett Head Office at 501 Swanston Street; a neighbouring nine level building at 489 Swanston Street, which was formerly Sir Reginald Ansett's "Ansett House"; a two storey property at 475 Swanston Street and a fourth property at 20 - 32 Franklin Street.

    PDG Corporation plans to refurbish the office building at 501 Swanston Street and is currently seeking appropriate tenants for the building. PDG recently completed the 30 storey 'Franklin Lofts' residential tower in Franklin Street and is proposing a similar development on the ex-Ansett sites on the corner of Franklin and Swanston Streets.


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    18 November 2002


    The end of an era will go under the hammer from tomorrow when the last of Ansett's head office furniture and equipment is auctioned in a two day sale on Tuesday 19 November and Wednesday 20 November, 2002.

    The auctions clear the way for PDG Corporation, new owners of the building, to take possession of the former Ansett landmark buildings at 489 and 501 Swanston Street Melbourne. A major redevelopment is planned including office space, and a four level retail complex.

    Among Ansett furniture and equipment to be auctioned from tomorrow are 1500 lots (over two days) including the furniture suites and equipment of the Ansett "17th Floor" previously occupied by the airline's managing director and executive management team. Other items include computer equipment, office equipment, business machines and even surplus Boeing 737 and Airbus First Class seats.

    The auctions tomorrow and Wednesday commence at 10.00am until last items are sold and will be conducted by Dominions Auctioneers


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