Asset-stripping claims vanish in hasty retreat

By JIM EAGLES business editor

The Australian assault on Air New Zealand took an even more bizarre turn yesterday as Ansett's administrators repudiated comments in their own report to creditors.

Mark Mentha and Mark Korda, of troubled international accountants Andersen, created international headlines when their latest report referred to "potential claims against Air NZ in relation to ... alleged asset stripping".

But yesterday the pair said the furore was the result of misinterpretation of their report.

"Media reports today were inaccurate in interpretation regarding references to investigations progressed since our first report to creditors," Korda said.

"We have found nothing to support the allegations of asset stripping or alleged inappropriate charging of fuel and other operating costs."

Air NZ, which was enraged by the renewed references to asset stripping and other wrongdoing, confined itself to distributing the statement from the administrators and saying it was "pleased to note the correction".

But behind the scenes there was frustration at further negative publicity as a result of the actions of Australian officials.

What the administrators said in their report was:

"The actions of a number of parties are being considered as part of our investigations into possible courses of action.

These include:

* Potential breaches by directors and officers of the Ansett Group of Companies duties in relation to: payment of bonuses in August 2001; accounting policies; sale and leaseback of fleet.

* Potential claims against Air New Zealand in relation to: alleged asset stripping; centralisation of treasury function and sweeping of bank accounts; methods of recording of intercompany loan accounts; alleged inappropriate charging of fuel and other operating costs.

* Potential claims against other parties: advisers and other officers; actions under the Trade Practices Act; set-off of funds held in bank accounts."

A spokesman for the Ansett administrators told the Business Herald that this was merely a report to creditors about the things that Korda and Mentha had needed to investigate in the course of their job.

"It's just a historical record."

Asked why, then, the report referred to "investigations into possible courses of action" and "potential claims against Air NZ" the spokesman said the report could perhaps have been written more clearly.

"I think," he said, "that's why we've had to issue the statement saying say nothing has been found that would justify taking action."

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