lowfaresbuster
17th Mar 2004, 11:32
from today's Irish Examiner
By Conor Keane, Business Correspondent
JETMAGIC is to be wound up after a search for fresh investors failed to secure an estimated €15 million required to re-start the company which ceased operations from its Cork base in January.
Cork Chamber of Commerce chief executive Michael Geary, who led a search for new investors, said that at this stage he believed there was no one out there willing to put Jetmagic planes back in the air.
The Irish Examiner understands that preparations are being made to wind up the company, which closed in late January with a deficit of close to €3.5m. More that €11m in equity had been invested in the company by mostly Cork-based shareholders
Jetmagic has yet to appoint a receiver or seek the protection of the High Court by asking to be put into examinership.
A formal announcement on the method of winding up the company is expected in the coming days.
Accounts for Jetmagic Limited, covering the year to March 2003, during its start-up phase show that shareholders provided €3.62m in interest free loans to the company in 2003.
It is understood that the loans were converted to shares since then. Among those who provided the loans were five directors who gave €240,170.
Shareholders in the company, which include former Aer Lingus chief, Michael Foley; IDA director Gary Duffy; Bowen Construction director Pat Kelliher; O’Flynn Construction director Brian O’Neill; solicitors Colm McGuire and Ciaran Desmond; air traffic controller Jochen Schnadt; ex- Jetmagic CEO Pat Raftery; Gary Tomlins; Colm McGuire; Guy Perrem; Timothy O’Connor; Alex McCarthy; Kevin O’Connor and developer Gerry Wycherley, are understood to have invested close to €11 million in the company before it hit the financial turbulence which grounded it.
In the year to the end of March 2003, company directors were paid €212,478 in “fees and other emoluments.” An accounting team has completed a creditors’ list and the total amount outstanding to, mostly Cork-based service and supply companies, will be in the region of €3.5 million.
Jetmagic’s 103 employees did not receive any redundancy payments because the company was not in business long enough for them to build up statutory entitlements.
A further 25 workers employed on a temporary basis by baggage handling and service provider Servisair also lost their jobs when Jetmagic ceased operations.
Aer Arann has already commenced operations on the Cork-Belfast route replacing the service previously offered by Jetmagic.
By Conor Keane, Business Correspondent
JETMAGIC is to be wound up after a search for fresh investors failed to secure an estimated €15 million required to re-start the company which ceased operations from its Cork base in January.
Cork Chamber of Commerce chief executive Michael Geary, who led a search for new investors, said that at this stage he believed there was no one out there willing to put Jetmagic planes back in the air.
The Irish Examiner understands that preparations are being made to wind up the company, which closed in late January with a deficit of close to €3.5m. More that €11m in equity had been invested in the company by mostly Cork-based shareholders
Jetmagic has yet to appoint a receiver or seek the protection of the High Court by asking to be put into examinership.
A formal announcement on the method of winding up the company is expected in the coming days.
Accounts for Jetmagic Limited, covering the year to March 2003, during its start-up phase show that shareholders provided €3.62m in interest free loans to the company in 2003.
It is understood that the loans were converted to shares since then. Among those who provided the loans were five directors who gave €240,170.
Shareholders in the company, which include former Aer Lingus chief, Michael Foley; IDA director Gary Duffy; Bowen Construction director Pat Kelliher; O’Flynn Construction director Brian O’Neill; solicitors Colm McGuire and Ciaran Desmond; air traffic controller Jochen Schnadt; ex- Jetmagic CEO Pat Raftery; Gary Tomlins; Colm McGuire; Guy Perrem; Timothy O’Connor; Alex McCarthy; Kevin O’Connor and developer Gerry Wycherley, are understood to have invested close to €11 million in the company before it hit the financial turbulence which grounded it.
In the year to the end of March 2003, company directors were paid €212,478 in “fees and other emoluments.” An accounting team has completed a creditors’ list and the total amount outstanding to, mostly Cork-based service and supply companies, will be in the region of €3.5 million.
Jetmagic’s 103 employees did not receive any redundancy payments because the company was not in business long enough for them to build up statutory entitlements.
A further 25 workers employed on a temporary basis by baggage handling and service provider Servisair also lost their jobs when Jetmagic ceased operations.
Aer Arann has already commenced operations on the Cork-Belfast route replacing the service previously offered by Jetmagic.