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 exa...
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.