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Interim Examiner Appointed To CityJet

Published on Apr 22 2020 10:05 AM in General Industry tagged: Trending Posts / CityJet

Interim Examiner Appointed To CityJet

An interim examiner has been appointed to Dublin-based regional airline CityJet by the High Court.

CityJet sought court protection from its creditors as a result of financial difficulties being exacerbated by its fleet being grounded due to the COVID-19 crisis.

According to The Irish Times, CityJet counsel Rossa Fanning SC told the court that the COVID-19 crisis interrupted and negatively impacted a planned merger with another airline and a proposed private restructure of the company.

However, CityJet believes that its business can be saved following a successful examinership process.

Mr. Justice Garrett Simons stated while CityJet is insolvent and unable to pay its debts, he accepts evidence from an independent expert that the airline has a reasonable chance of surviving if certain steps are taken.

Simons appointed insolvency practitioner Kieran Wallace of KPMG as interim examiner to the airline.

CityJet has also introduced cost-cutting measures, which it said will save it millions of euro.

The airline anticipates that its services will return gradually over the coming months, and said that it could make a profit if the examinership process is successful.

A Complex Process

Simons stated that the examinership will be complex and that no time should be lost in a process that must be completed within 100 days.

© 2020 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.

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