New backer 'to invest to €2.2m into Aer Arann'

The High Court has heard a new investor will pump €2.2m into Aer Arann if it successfully exits examinership.

The airline, which is insolvent with debts of €29m, is fighting for its survival.

The examiner’s projections show Aer Arann can return to profitability over the next two years.

€3.5m of new investment is to be pumped into the airline, €2.2m of that will be spent on paying off the company’s debts.

This involves a substantial writing down of what is owed by the company.

A third party Tim Kilroe Jnr plans to invest a further €2.2m.

But the Revenue Commissioners which are due more than €1.1m remain dissatisfied and believes they are getting far more unfavourable treatment than other creditors.

It is for the court to decide whether there is evidence to show the company has a reasonable prospect of survival.