Content area
Full text
SYDNEY - New bids are being sought for the assets of failed Australian carrier Ansett Airlines after the last-minute collapse of talks between the Tesna Holdings Ltd. syndicate and the airline's administrators Feb. 27.
The administrators, Mark Mentha and Mark Korda of accounting group Andersen, said they will seek talks with Singapore Airlines Ltd., Richard Branson's Australian discount airline Virgin Blue and Australian transport group Patrick Corp., among others.
Ansett was placed in the hands of administrators in September with debts of more than A$3 billion ($1.5 billion) after its former parent, Air New Zealand Ltd., ceased funding the money-losing airline.
The airline resumed limited operations in October pending the outcome of talks with potential buyers of its remaining assets, including the carrier's Melbourne headquarters and airport terminal leases in various state capitals.
The A$514 million sale of the Ansett assets to Tesna - a syndicate comprising clothing manufacturer Solomon Lew and trucking magnate Lindsay Fox, and supported by U.S. aviation investors David Bonderman and Bill Franke - was scheduled for completion today.
However, on Wednesday Tesna blamed third-party issues, mostly relating to the airport and aircraft leases, for its decision to walk away.
"We have reluctantly reached the conclusion that the sale agreement is not capable of completion and that the process involving Tesna and the administrators cease," Tesna said.
Analysts suspect the syndicate had funding problems, and newspaper reports in recent days had claimed that bankers had balked at supporting the airline, which had reportedly projected losses of A$120 million in its first year.
Fox and Lew, however, denied there were funding problems.
"I don't think I've felt as bad about any...