Aer Arann protection extended
Published 27/10/2010 | 05:00
THE High Court has extended court protection for Aer Arann until Friday next when it will be asked to approve survival plans for the troubled airline.
Ms Justice Mary Finlay Geoghegan was told yesterday that a majority of the airline's creditor classes had met and approved the scheme of arrangement put forward by examiner Michael McAteer.
Rossa Fanning, for the examiner, said that, of 16 creditor classes, 12 had voted on the proposals of which nine were in favour. Four meetings failed to reach a quorum, and these would be reconvened this week.
Mr Fanning said the Revenue -- which is owed some €2m -- had voted against the terms on a "principled" basis while there was also opposition from another creditor, ATR, although he believed the latter's position had since modified.
Mr Fanning said he did not anticipate further objections to the proposals and added the examiner was anxious for commercial reasons that the court deal as soon as possible with the application for confirmation of the scheme of arrangement.
Creditors of Aer Arann are owed €29.5m but are set to receive just €2.2m from the airline's new investors in settlement of their debts.