Aer Arann seeks North courts recognition of examinership process

The High Court is to send a letter asking its counterpart in the North for recognition of the court protection granted to Aer Arann last week.

The purpose of the letter is to ensure that none of Aer Arann's aircraft are seized by anyone owed money while the airline is in examinership.

An interim examiner was appointed to the airline, which employs more than 300 people, by Ms Justice Maureen Clark at the High Court late last Thursday.

The Court heard that Aer Arann, which had lost millions of euro in recent years, was seeking to be placed into examinership in order to reorganise its affairs. The court also heard that the airline has a reasonable prospect of survival if certain steps are taken.

Today at the High Court Mr Justice Peter Charleton agreed to send a letter to the High Court in the North seeking recognition of the examinership process in this jurisdiction.

The Judge was informed that the company was making the request for judicial assistance amid concerns over Aer Arann's aircraft that operate flights to and from City of Derry and Belfast airports.

The Judge said he had no hesitation in agreeing to something that "would assist in the administration of the examinership of Aer Arann."

Last week the High Court appointed accountant Mr Michael McAteer of Grant Thornton as interim examiner to the airline. Ms Justice Clark made the appointment after being informed that an independent accountant's report revealed that Aer Arann has a reasonable prospect of survival as a going concern.

The airline, in seeking the protection of the court from its creditors, cited the drop in passenger numbers caused by the global economic downturn as well as the disruption caused to flights by the Icelandic volcano earlier this year as the main reasons behind its financial difficulties.

The court heard that the airline was seeking the protection of the court because it is currently insolvent and cannot pay its debts. However the court was also informed that a number of prospective investors have entered into talks with the airline.

The matter is due back before the High Court next week.