FED: Australiawide alters bid, stays in running for Hazelton
By Roz King
SYDNEY, April 30 AAP - Two companies are still in the running to buy regional airlineHazelton, after one decided to alter its bid instead of pulling out today.
Australiawide Airlines Ltd had threatened to withdraw from competition unless a decisionon the successful bidder was made by midnight last night.
But the ultimatum passed without the threat being carried out.
Instead, Australiawide executives sat down this morning with Hazelton administratorMichael Humphris from Sims Lockwood to nut out a resolution.
"In light of those discussions we are restructuring the bid," Australiawide spokesmanArmon Hicks said.
He refused to elaborate on what the restructure would involve but said it would notbe a "fundamental" change.
"We expect to hear from administrators within the next few days," he said.
Otherwise Australiawide, a company comprised of various aviation experts, would renewtheir threat to pull out, he said.
Australiawide's withdrawal would leave only one other bidder - the Inland MarketingCorporation, a consortium of NSW local governments.
The announcement by Australiawide followed a statement by Mr Humphris today sayingthe Hazelton sale wouldn't proceed unless the two bidders changed their proposals.
He said the two bidders had "self-imposed conditions".
"Until the bidders remove these conditions there is no possibility of progressing tocontractual arrangements," Mr Humphris said in the statement.
He was not available today to comment further on what the conditions were.
Mr Hicks refused to say if alterations to the Australiawide proposal were made to theconditions Mr Humphris criticised.
The bidding process was yesterday delayed an extra 30 days to allow more time to securea sale and avoid liquidation.
Mr Humphris had said he hoped to announce a preferred bidder within a fortnight.
Australiawide chief executive Michael Jones had said the administrators were unnecessarilydragging out the decision on the preferred bidder.
Hazelton was placed into administration following the initial collapse of Ansett, whichhad bought the airline after a bidding war with Qantas.
When Ansett collapsed in September, a separate administrator was appointed and Hazeltonwas ultimately able to resume flying on almost all of its routes.
AAP rk/arb/jnb/de
KEYWORD: HAZELTON NIGHTLEAD
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