Creditors of the Ansett group of companies today voted in favour of recommendations made by Administrators, Mark Mentha and Mark Korda, to execute deeds of company arrangements for each Ansett company therefore continuing the Ansett administration.
In a statement issued this afternoon, the Federal Government also acknowledged its support for the Deeds of Company Arrangement and continued administration.
A full poll of creditors was taken at the Second Meeting of Creditors` of the Ansett Group held at the Melbourne Exhibition Centre. The meeting commenced at 11.00am this morning and closed at 3.15pm after several hours of discussion regarding the Ansett administration.
The poll taken was to determine whether each Ansett company should execute a deed of company arrangement, or the administration should end and each Ansett company be placed into liquidation.
At a press conference after the meeting, Messrs Mentha and Korda said they were pleased with the outcome of the meeting as it represented the best possibility of maximising returns to all creditors.
They said it also ensured that more than 1400 Ansett group employees who are still employed at Kendell Airlines, the Ansett Simulator Centre, the Australian Aviation Engineering Services and Ansett International Cargo remained so, while the administration negotiates the sale of several key assets as `going concerns.`
Additionally, Messrs Mentha and Korda acknowledged the Federal Government for its support for the continued administration. They also expressed gratitude for the Government`s swift action which has allowed the commencement today of a disbursement of some $90 million in entitlements to approximately 2,700 former Ansett workers under the Special Employee Entitlements Scheme for Ansett group employees (SEESA).
A further $20 million is also ready to be paid out to almost 800 other former Ansett group staff.
“I would like thank the Federal Government for its support in allowing us to make another tranche of payments to nearly 3000 people today which now brings total payments to employees up to $303 million, and some 11,000 employees now have received a significant part of their entitlements,” Mr Mentha said.
Entitlements payments being made from today will include: 4-5 weeks pay in-lieu of notice / annual leave / long service leave / up to 8 weeks redundancy paid under the SEESA program.
Further entitlements above and beyond these initial payments will be subject to the sale by the Administrators of Ansett Australia Group assets.