" National Express's parent group will contribute $10 million to creditors
if a deed of company arrangement is accepted. At best, creditors will
receive about 43c in the dollar."

....in about 12 years time....

SG

> -----Original Message-----
> From: nick4mony [mailto:no_reply@...]
> Sent: Monday, 12 May 2003 1:18 PM
> To: otmushrooms@...
> Subject: [otmushrooms] Same administrator, similar result
>
> The 43% fraction, and the name Robert Whitton has come up in another
> forum. Funny how the same person leads to a similar result ...
>
>
> (For those that don't know, Robert Whitton is also the administrator
> of National Express, running M> and V/Line trains & trams in
> Melbourne).
>
> I will try to get onto Trevor Dobbyn to see whether the staff have
> been paid out.
>
> Full story from the Herald Sun (a Daily Telegraph lookalike) below.
> ----------- *************** ------------
> Subject: HS: $20m transport payout
>
> http://www.heraldsun.news.com.au/common/story_page/0,5478,6158949%
> 255E2862,00.html
>
> $20m transport payout
> By JOHN MASANAUSKAS, transport reporter
> 21mar03
>
> THE State Government yesterday announced a $20 million bailout of
> firms
> hit by the collapse of public transport operator National Express.
>
> And administrators of the failed British-owned company said it was
> possible it traded while insolvent and directors could face charges.
>
> Transport Minister Peter Batchelor announced the bailout in Parliament
> yesterday afternoon, shortly after the world was distracted by the
> start
> of the Iraq war.
>
> Opposition transport spokesman Terry Mulder said Mr Batchelor had
> reversed his earlier policy on the payout under the cover of war.
>
> "He's done a double backflip and thrown in $20 million hoping no one
> would notice," he said.
>
> But Mr Batchelor's spokesman, Matt Phelan, denied the Government had
> tried to use the war to hide the payout.
>
> Mr Phelan said the Government was obliged to provide details after
> National Express administrators told creditors about the payment on
> Wednesday.
>
> "We have no control over the administration. The administrators put
> out
> a report," he said. "If we hadn't done anything we would have been
> accused of hiding a secret payment".
>
> Mr Batchelor pledged the $20 million yesterday after hinting to the
> Herald Sun last week that unsecured creditors were unlikely to get
> Government help.
>
> National Express, the former operator of M>Train, M>Tram and V/Line
> passenger service, owed about $70 million to hundreds of trade
> creditors.
>
> Major creditors include transport infrastructure company Thiess,
> maintenance firm EDI Rail, Bombardier Transportation and TXU
> Electricity.
>
> In December, when National Express withdrew from its privatisation
> contracts, Mr Batchelor said the Government would honour the wages and
> entitlements of the company's employees.
>
> But no commitment was given to trade creditors.
>
> Mr Phelan said the Government had decided to help the firms because of
> their role in keeping the public transport system running.
>
> "They remain an important part of the system," he said.
>
> National Express's parent group will contribute $10 million to
> creditors
> if a deed of company arrangement is accepted. At best, creditors will
> receive about 43c in the dollar.
>
> Rail, Tram and Bus Union state secretary Trevor Dobbyn said taxpayers
> were again footing the bill for a failed Kennett era privatisation
> experiment.
>
> In their latest report, National Express administrators said there was
> a
> strong argument the group traded while insolvent from December 16 to
> 23
> last year.
>
> "And quite possibly for a period prior to the announcement by the
> parent
> company that it would withdraw funding from the Group," they said.
>
> Joint administrators Simon Wallace-Smith and Robert Whitton said some
> National Express directors and employees could face prosecution under
> the Corporations Act.
>
> A second creditors' meeting will be held next Wednesday, when the
> administrators will recommend a 60-day adjournment to consider a deed
> of
> company arrangement.
>
>
>
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