Transaero confident of exiting examinership

Transaero confident of exiting examinership

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Photo: © Pat Flynn 2015
Transaero Engineering Ireland looking forward to exiting examinership – Photo: © Pat Flynn 2015

Management at an aircraft maintenance facility that employs 230 people at Shannon Airport say they are looking forward to exiting Examinership later this month.

An interim examiner was appointed to Transaero Engineering Ireland (TEI) in January following a request from the company in High Court.

TEI requested Court Protection and the High Court appointed Michael McAteer of Grant Thornton as interim examiner to the company with a view to presenting a restructure plan to ensure the company’s future.

The company’s legal team had told the court that the global geo-political and economic climate had been having increasingly negative effects on TEI’s parent company, the Russian carrier Transaero Airlines.

A notice on the company’s website outlines how the combined impact of the EU/US trade sanctions, geo-political tensions, the fall in the price of oil and the Rouble currency crisis continue to impact on economic activity within Russia and between many of its main trading partners.

“This has created serious financial difficulties for Transaero Airlines who rely on the support of the Russian banks and make many of their payments in Euro and Dollars. The net effect of these events has resulted in TSO (the airline) seeking Russian government support/financial aid,” the company said.

Photo: © Pat Flynn 2015
Parent company Transaero Airlines unable to pay money owed – ,Photo: © Pat Flynn 2015

The High Court also heard how Transaero Airlines was not in a position to pay TEI moneys due for services rendered and has indicated that it is not in a position to support TEI on an ongoing basis.

TEI said it intended to use the court protection period to restructure its business and to work with its existing core base of quality customers.

The company also confirmed in January having “initial contacts with a potential investor with a view to securing an investment that will put the company on to a solid footing.”

“It is anticipated that an arrangement could be reached within the timeframe of the examinership period,” the company said.

There has been speculation in recent days that an investor has been secured for the facility.

Following meetings held last Friday, a company spokesman said: “We look forward to the final Court hearing on the 14th of April, and the exiting of the Company from Examinership.”

“Both the Company and the Examiner welcome the support shown by the creditors at the various meetings held last Friday. The support for the scheme together with the voting by the staff to the work practice changes, puts the company on a very strong footing going forward,” the spokesman added.