couple of articles from brisbane times

Transpacific chiefs reap rewards despite near collapse
MATT O'SULLIVAN
September 25, 2009
TRANSPACIFIC has rewarded most of its senior managers and its executive chairman, Terry Peabody, with increases in salaries and fees, despite the debt-laden waste management company only narrowly avoiding collapse several months ago.

The company's shares plunged 84 per cent since early last year, but it has emerged that Mr Peabody pocketed an $18,000 increase in his base salary, to $750,014. His total package totalled $833,366 for the year to June, up from $816,374 on the previous year.

The chief executive, Trevor Coonan, also had a rise in his base salary, to $874,017. However, his total package of $1.29 million - including non-monetary benefits of $106,511 - was down from $1.38 million in 2007-08. Nine of Transpacific's senior executives had rises in their base salaries, despite the company posting a full-year loss of $218 million.

Transpacific was bailed out by the private equity firm Warburg Pincus in June after it agreed to back a $800 million capital-raising. The recapitalisation resulted in Warburg Pincus becoming the largest shareholder, with a 31 per cent stake, while Mr Peabody's holdings shrank from 38 per cent to 18.5 per cent.

Meanwhile, the company has ended its relationship with its external auditor, Bentleys, by signing Ernst & Young for the role.

Transpacific spent $1.12 million on having Bentleys audit its accounts last financial year, up from $1.07 million in the previous year.
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WINGING TICKET
Corporate jet travel comes in handy when you run a company on the verge of collapse. Take the Terry Peabody-chaired liquid and solid waste collection company Transpacific Industries.
Despite breaching the covenants on its debt facilities and reporting a tidy $237 million loss last financial year, Transpacific upped the fees it paid to the private jet charter outfit owned by Peabody last financial year from $252,411 to $446,493.
Obviously the use of the Dassault Falcon 2000 EX proved invaluable to Peabody and his team, given Transpacific in its annual report notes how it was used to fly company executives ''in connection with the acquisition of businesses, bank negotiations and investor relations''.
It is unclear if Transpacific's suffering shareholders will see it as a prudent use of company funds. Wonder what Transpacific's new cornerstone investor and private equity white knight Warburg Pincus makes of it?
The Peabody-owned Brenzil Jet Charter notes its $30 million Falcon, is ''without doubt the most sophisticated aircraft available in Australasia''. Maybe it is handy to have a private jet to stay ahead of debt deadlines.
Transpacific, however, did not use Peabody's 100-foot pleasure boat, the MV Whistler. But it did help Peabody out with some of the cruiser's paperwork. On June 30 it was still owed $70,016 in relation to the Whistler.
There was also a ''small amount'' of administrative work for Peabody's New Zealand winery, Craggy Range, which owed Transpacific $286,593 at the end of the year.
FEES UP
It is also touching to see Peabody, who saw his stake in Transpacific
diluted after an emergency $800 million capital raising, had a few extra beans thrown his way. His chairmanship fees rose from $816,374 to $833,366. Transpacific's chief executive, Trevor Coonan, saw his base pay packet swell an impressive 13 per cent to $874,017.
Peabody also has a novel way to describe the performance of a company that has seen its share price collapse. ''In these tough times, it goes without saying that our people have played a major role in our continued success,'' he says in the annual report.