AN ADDITIONAL investor is prepared to take a stake in Aer Arann if the scheme designed to ensure the airline’s survival is approved, the High Court heard yesterday.
The court was told the airline’s examiner had been unaware of the existence of an arrangement with the proposed new investor.
The identity of the investor was not disclosed but it is understood to be an individual who is prepared to make a multi-million euro investment in Aer Arann if the survival package is approved.
Ms Justice Mary Finlay Geoghegan said the court required more details of this and adjourned to tomorrow a hearing on whether to approve the scheme.
The examiner – Michael McAteer of Grant Thornton – is expected to submit the necessary paperwork to the court this afternoon in relation to a revised scheme of arrangement for creditors.
The court previously heard some €3.5 million from a group comprising UK transport company Stobart and Galway businessman Pádraig Ó Céidigh, the airline’s owner, is to be invested in Aer Arann.
The judge was told by lawyers for the airline’s examiner that a new investor had held discussions with the company and was prepared to acquire equity in the airline if the scheme of arrangement was approved by the court.
The court was due yesterday to hear further submissions from Mr McAteer in response to “serious and significant concerns” expressed by the judge on Friday over the scheme.
The judge had said the court could not approve the scheme unless it was satisfied the airline had a reasonable prospect of survival. She said she had insufficient information on a number of matters in that regard.
The court was also due yesterday to further consider the Revenue Commissioners’ opposition to the scheme.
The Revenue alleges it is being treated unfairly and will receive a smaller dividend than other creditors.
Rossa Fanning, for the examiner, said his client was unaware last week of the existence of an arrangement with the proposed new investor. The new investment would be outside the scheme of arrangement, he added.
Counsel said the proposed new investment did “complicate things”. Following the concerns expressed by Revenue, it was proposed to improve the terms of the scheme in regards to Revenue, Mr Fanning said.
Creditors are owed more than €29 million with Allied Irish Banks, owed €5.2 million, the largest creditor. The survival plan has secured the support of nine out of the 12 classes of creditors, including AIB.
