Saturday 18 November 2017

Examiners go in at Aer Arann and builder McInerney

Emmet Oliver and Laura Noonan

TWO of Ireland's leading companies, regional airline Aer Arann and well known housebuilder McInerney, face an uncertain future after both went into examinership last night.

About 400 jobs are under threat, but it is possible new buyers may emerge for the companies.

McInerney, which is already attracting interest from a US investment fund, said last night it went into examinership after NAMA told its banks to cut funding to the company.

However, it is understood NAMA rejects this claim.

Aer Arann blamed the recent disruption caused by the Icelandic volcanic ash crisis for its difficulties.

The company, which is heavily dependent on government grants to fly many routes, has operations in Ireland, the UK and France.

McInerney is struggling under the weight of €240m of debts and among the banks now likely to lose out is nationalised lender Anglo Irish Bank. This bank and Bank of Ireland together are owed €111m by McInerney, and it is likely only a fraction of this money will now be repaid.

Both firms continue to trade for now. Aer Arann said customers would not be affected and flights would operate as normal.

Companies are increasingly trying to use the examinership processes to stay afloat.

Irish Independent

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