High Court confirms appointment of joint liquidators to Stobart Air

The company ceased trading last month due to the impact of the pandemic on the aviation industry

The High Court has appointed joint official liquidators to Stobart Air, which provided employment to 480 people.

The High Court has confirmed the appointment of joint official liquidators to Stobart Air which ceased trading last month due to the impact of the pandemic on the aviation industry.

Ms Justice Miriam O'Regan, in appointing Deloitte Ireland partners Ken Fennell and Mark Degnan, told a representative of 38 Stobart employees that their concerns over non-payment of wages arrears and other entitlements would be best addressed through the liquidators.

Louis Owens, who was data protection officer in Stobart, told the judge he and his 37 colleagues were seeking a full review of the ownership structure of Stobart. He said, as they were unemployed, they could not afford legal representation.

He said, as employees, they had been repeatedly told they owned 51% of the company through an employment benefit trust. Mr Owens said he had obtained an old copy of that trust document and Mr Owens' own accountant had agreed with him that it was "a very convoluted and opaque" document.

Pay-related matters

Esken, the British aviation and energy group which is Stobart's parent and main funder, had made legally binding statements to pay arrears of wages and other pay-related matters but nothing has been paid, he said.

Mr Owens said he and his colleagues believe Esken should pay and until that happens the liquidation application should be adjourned. Alternatively, he asked the court to make it a creditors' liquidation.

Stephen Brady, for the liquidators, said there had been engagement with all stakeholders and it was proposed to make the employees redundant and have their statutory claims processed through the Department of Social Protection.

It is hoped that the issue of arrears of wages can be "wrapped up in early course", counsel said.

Stobart provided employment to 480 people, 152 of whom are directly employed.