Revenue will not oppose bid for CityJet survival scheme approval

The examiner is recommending that the scheme, which has the support of the majority of the airline's creditors, be approved
Revenue will not oppose bid for CityJet survival scheme approval

Last April, CityJet sought the protection of the courts claiming it was insolvent due to financial difficulties which were exacerbated after its fleet of over 30 aircraft was grounded due to the Covid-19 outbreak.

The Revenue Commissioners will not oppose an application to the High Court to approve a survival scheme for the regional airline CityJet.

During a brief hearing before the High Court today, Mr Justice Michael Quinn heard that Revenue has obtained clarification from the airline's court appointed examiner on what it regards as important issues.

The examiner Mr Kieran Wallace of KPMG is recommending that the scheme, which has the support of the majority of the airline's creditors, be approved.

The hearing of the application to have the scheme formally approved by the High Court is fixed for later this week.

If the scheme is approved by the court the arrangement with the creditors will allow the business to continue to survive as a going concern.

The judge welcomed the clarification as regards Revenue's position.

Last April the airline sought the protection of the courts claiming it was insolvent due to financial difficulties which were exacerbated after its fleet of over 30 aircraft was grounded due to the Covid-19 outbreak.

The impact of the pandemic interrupted a planned merger with another airline and a proposed private restructure of the company, it claimed.

It has debts of €500m, and at the time of entering the examinership process had a net deficit of liabilities over assets on a going concern basis of €186m.

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