Galway Airport managers secure stay of execution for three months
At the start of February, it emerged Bank of Ireland had seized €1.1m from the airport’s deposit account to offset loans, even though repayments were fully up to date. At the time, management warned if the move was not reversed, it would no longer be able to trade as a going concern.
The board had been in the process of identifying potential buyers/ investors who could save the facility.
That future had been uncertain after Aer Arann flights were suspended for the winter and Government funding withdrawn.
In light of the Bank of Ireland seizure, the board removed a further €450,000 from the account to cover redundancy payments for staff, who were due to be let go this weekend.
Staff began a sit-in after management told them that, under legal advice and even though the workers were willing to work to the end of their notice period, it could not pay redundancy cheques from the money set aside.
For the last week, directors at the airport were engaged in intense negotiations with the bank in an attempt to get the seizure of the money reversed.
Yesterday, they told the workers that, while the money had not been returned, the bank had agreed to support the airport while it engaged in a process of attracting investors or buyers for the operation.
Before the Bank of Ireland situation began two weeks ago, the airport directors had enlisted PricewaterhouseCoopers to approach potential investors/ buyers for the business as a going concern.
PwC had identified a potential 70 entities and the directors had shortlisted those to 12 and instructed PwC to contact them.
Galway Airport director Declan Dooley said that having negotiated the support package with Bank of Ireland, the airport could now continue with that phase of the PwC process starting on Monday.
He said the workers who had been fearful of not receiving their redundancy entitlements had all been given their cheques yesterday.
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