New investor prepared to take Aer Arann stake

An investor, whose interest has not been previously disclosed, is prepared to take a stake in Aer Arann if the scheme designed to ensure the airline's survival is approved, the High Court heard today.

Previously the court heard that as part of a survival plan for the airline, which employs more than 300 people, some €3.5m from a group comprising UK transport company Stobart and Galway businessman Pádraig Ó’Céidigh, the airline's owner, is to be invested in the company.

This afternoon Ms Justice Mary Finlay Geoghegan was informed by lawyers acting for the airline's examiner Mr Michael McAteer of Grant Thornton that a new investor had held discussions with the company and was prepared to acquire equity in the airline if the scheme of arrangement agreed with the airline's creditors is approved by the court.

No details concerning the proposed investment, nor the identity of the new investor, were revealed in open court yesterday.

The court was due to hear further submissions from the the airline's examiner Mr Michael McAteer, who is seeking to have the plan approved by the court, in response to the "serious and significant concerns" expressed by the Judge over the scheme.

The Judge had sought clarification on a number of issues relating to the scheme because the court could not approve the plan unless it was satisfied the airline has a reasonable prospect of survival as a going concern.

In addition the court was also due to further consider the Revenue Commissioners' opposition to the scheme being approved. Revenue alleges they are being treated unfairly as they will receive a smaller dividend than other creditors. If the court approves the scheme the airline will be allowed exit examinership.

However in light of the proposed new investment the Judge said she was adjourning the company's bid to secure the court approval of the scheme to Wednesday. The Judge said she required to see all the relevant information about the proposed new investment, and how it might effect the scheme.