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Revenue seeks clarifications before it will approve CityJet rescue plan

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Survival bid: Regional airline CityJet’s rescue scheme will save 146 Irish-based jobs, it says

Survival bid: Regional airline CityJet’s rescue scheme will save 146 Irish-based jobs, it says

Survival bid: Regional airline CityJet’s rescue scheme will save 146 Irish-based jobs, it says

The Revenue Commissioners have yet to decide if it will oppose an application to the High Court to approve a survival scheme for the regional airline CityJet.

On Friday, Mr Justice Michael Quinn heard Revenue is seeking clarification from the airline's court-appointed examiner on what it regards as important issues.

The examiner, Kieran Wallace of KPMG, is recommending the scheme be approved, but his counsel, James Doherty SC said that it was not clear if Revenue will support a scheme that will result in the retention of 146 Irish-based jobs.

The hearing of the application to have the scheme formally approved by the High Court is fixed for next week.

Counsel said Mr Wallace -who was appointed as CityJet DAC's examiner in April - had secured the required level of statutory support from the airline's creditors for the scheme of arrangement.

If approved by the court, the arrangement with the creditors will allow the business to continue to survive as a going concern.

However counsel said Revenue, which is a creditor of the airline, has yet to decide if it is going to oppose the application.

He said when the proposed scheme was put to the different classes of CityJet's creditors Revenue had voted against it.

Grainne Clohessy SC for Revenue said her client "did not want to do the company down".

However Revenue requires clarification on certain important issues concerning the airline from the examiner. Counsel said that CityJet was involved in litigation with other parties.

Large sums of cash, which counsel said could be over €50m, will come into the company if the airline wins those cases, he added.

If the money does come into the company, Revenue wants to know where it will go, or if it will go towards the airline's creditors.

It was hoped that the clarifications sought by Revenue will be provided in advance of next week's court hearing on approval of the survival scheme.

Rossa Fanning SC for the company, who said his client is supporting the scheme.

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Mr Justice Quinn fixed next Wednesday, July 29 for the hearing of the application to approve the rescue plan.


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