ANSETT GROUP OF COMPANIES
First Report by Administrators
Pursuant to Section 439A of the Corporations Act
16 January 2002
ANSETT GROUP FIRST REPORT BY ADMINISTRATORS
This is our First Report to creditors as Administrators of the Ansett Group. As required by the Act, this report addresses the companies’ business, property, affairs and financial circumstances and provides our preliminary opinions on the following matters: • Whether it would be in the creditors’ interests for the Companies within the Ansett Group to execute a Deed of Company Arrangement; • Whether it would be in the creditors’ interests for the administration of the Companies within the Ansett Group to end; and • Whether it would be in the creditors’ interests for the Companies within the Ansett Group to be wound up and the reasons for those opinions. The administration of the Ansett Group is extremely large and complex. This First Report is intended to be an overview of the Ansett Group’s operations and our actions to date in order to assist creditors to gain an understanding of the current status of the administration. It will also outline the primary matters that will be considered at the Second Meetings of Creditors of the Ansett Group. Separate meetings of creditors under Section 439A of the Act are scheduled for Aeropelican, Skywest Airlines, Skywest Aviation, Skywest Jet Charter and Skywest Holdings (“the excluded companies”) on Friday, 25 January 2002 due to the particular requirements associated with the sales of those businesses. Separate reports under Section 439A will be distributed to the creditors of the excluded companies. They will not be considered in detail in this report. Any reference in this report to the excluded companies is for information purposes only for the creditors of the remainder of the Ansett Group. This report relates to the companies within the Ansett Group (other than the excluded companies) set out in the list of companies attached at the conclusion of this report. The Second Meetings of Creditors for these companies are scheduled for Tuesday, 29 January 2002. The primary issue to be considered by creditors at this meeting will be the approval of the sale of the mainline airline to Tesna. This meeting will not determine how the proceeds of the sale will be applied. And while it is our preliminary opinion that it would be in the interests of the creditors of the Ansett Group companies that the companies execute DOCAs, we are still conducting investigations in this regard. Our investigations will be further progressed and reported to creditors before they are asked to vote on whether the companies should enter into DOCAs.
ANSETT GROUP (ADMINISTRATORS APPOINTED) FIRST REPORT BY ADMINISTRATORS
We will be seeking to hold the Second Meetings of Creditors of the Ansett Group companies in two parts:
Date Purpose of Meeting To be Referred to as: • 29 January 2002 To receive a report on the conduct of the “Part 1 of the Second administration to date Creditors Meeting”