CREDITORS OF Aer Arann are set to receive €2.2 million from the airline’s new investors in settlement for their debts. This is part of a scheme of arrangement that has been put together by Aer Arann’s examiner, Michael McAteer of Grant Thornton.
Some creditors – notably the Dublin Airport Authority – are set to receive all of the money they are owed under the terms of the scheme, but others will get back just 2 per cent.
It is understood that AIB’s exposure of €5.2 million would be rolled over into the new entity.
A document detailing the creditors' scheme – which has been seen by The Irish Times– was sent to the various groups on Monday.
In all, there are 18 classes of creditor at the airline, who are owed some €29.5 million between them.
It is understood that the airport authority will be repaid the €1.9 million it is due over a two-year period. Aer Lingus, which is listed as a franchise creditor, is also to be paid in full.
The airline is owed €3.75 million relating to its franchised regional air service operated by Aer Arann.
A large number of Aer Arann pilots, who paid €25,000 towards their training, will also be covered in full by the scheme.
The pilots are normally repaid this money if they spend a set number of years with the company.
Galway Airport, which provides hangar facilities to Aer Arann, is owed just under €2.2 million.
The document does not disclose how much Galway Airport will receive under the scheme, but it is described as an “impaired” creditor.
Unsecured creditors are to receive 10 per cent of what they are owed, while preferential creditors will be offered 12.5 per cent.
The Revenue Commissioners is owed €436,842 as a super preferential creditor and is slated to get 15 per cent of this sum. It is also owed €685,000 as a preferential creditor in PAYE and PRSI payments. Revenue will receive just 10 per cent of this sum.
Contingent aircraft delivery creditors – listed as NAC and Thun – are to get only 2 per cent.
Mr McAteer has agreed an investment deal of €3.5 million with a group comprising UK transport company Stobart and Galway businessman Pádraig Ó’Céidigh, who owns the airline. The investors will purchase Aer Arann for €1.
Of the initial investment, €2.2 million will be paid to creditors and fees from the examinership process.
The balance will go towards working capital.
An additional €1.5 million will be made available to the company through a loan over a two-year period for working capital.
A 50 per cent equity interest in two aircraft will also be transferred to Aer Arann, which will have the effect of boosting its balance sheet by €2.5 million.
Meetings with creditors have been scheduled for Friday at the Radisson hotel at Dublin Airport.
The document relating to the scheme of arrangement shows that costs of the examinership, including legal fees, amount to €400,000.
Aer Arann was placed into examinership in August.
STATE OF AFFAIRS AIRLINE'S MAIN DEBTS:
AIB – €5.2 million
Aer Lingus – €3.75 million
Galway Airport – €2.2 million
Dublin Airport Authority – €1.9 million
Self-funded pilots creditors – €1.1 million
Revenue Commissioners – €1.1 million
Sky Handling Partners – €428,678
UK departure tax – €389,568
Waterford Airport – €329,055
