Creditors vote to stay Ansett execution

MELBOURNE - Creditors of the 36 companies in the failed Ansett group yesterday approved a plan for a deed of company arrangement, which would allow operations such as Kendall airlines to continue while administrators try to sell Ansett's assets.

Sydney Airport Corp opposed the resolution, pressing instead for a liquidation because it wants to buy back the Sydney Airport domestic terminal lease from Ansett, rather than go through a competitive bidding process.



The administrators have said that employees should get the full A$720 million ($870 million) they are owed, but unsecured creditors are unlikely to get anything.

The vote pleased Virgin Blue. "We simply want more time to look at trying to structure a deal whereby we can take over the airport assets," David Huttner, Virgin Blue's commercial head, said.

The federal Government, which wants to sell off Sydney Airport for an expected A$5 billion but is owed A$303 million which it advanced to pay Ansett worker entitlements, backed the deed of arrangement.

- REUTERS

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