Things are more positive in light of yesterday's proceedings:
FOURTEEN GROUPS have expressed an interest in investing in Aer Arann and the examiner hopes to have secured a deal for the airline by October 10th, the High Court has been informed.
In a report submitted to the court, Michael McAteer of Grant Thornton, who was confirmed as examiner of the airline yesterday by Ms Justice Finlay Geoghegan, states that indicative offers must be lodged on September 20th while final offers will have to be presented on October 6th.
The examiner said he wants to run the investment process over a “tight timeframe” in light of “cash constraints within the business”.
A scheme of arrangement would then be put to creditors, with a meeting of creditors pencilled in for October 15th.
Any agreement would be subject to the High Court’s approval.
Mr McAteer’s report states that Aer Arann had met all its “forecast targets” for this year until the airspace closures in April caused by the volcanic ash.
Judge Finlay Geoghegan confirmed Mr McAteer as examiner after considering reports to the effect that the company had a reasonable prospect of survival if certain measures were taken.
Declan Murphy, counsel for the airline, told the court that Comh-fhorbairt Gaillimh, the company that operates Aer Arann, employed 320 people and it was in the interests of both creditors and employees that a scheme of arrangement be set up to protect the company into the future.
He said despite making a profit of more than €4.4 million in 2007, the airline, which leases 13 aircraft, had lost about €6 million in each of the three years since.
While it had implemented costsaving measures and was acting as a franchisee of Aer Lingus, the airline had been hampered by the global downturn and losses incurred when flights were grounded due to the volcanic ash crisis. The court heard that creditors included AIB, which was owed €3.9 million; the Revenue Commissioners; Dublin Airport Authority; Aer Lingus; and the Irish Aviation Authority.
AIB has already made €600,000 available to the airline and offered an additional facility of €1 million if required.
Rossa Fanning, counsel for the examiner, said Mr McAteer had to report again to the court within 35 days and this would bring the matter up to within four days of the new law term.
He was granted an extension until October 11th to present the examiner’s next report