CityJet meetings agree to write off £6 million of debt

THE majority of CityJet's creditors agreed to write off £6 million of the money they were owed at meetings yesterday, a spokesman for the company has said. The company was placed in examinership last month and has accumulated losses of £13 million.

Under a scheme of arrangement, presented by the examiner Mr John McStay at a series of meetings in Dublin yesterday, "the overwhelming majority of the creditors, both in number and value" accepted the scheme, the spokesman said.

Mr McStay will lodge his report in the High Court today, and will ask the Court to set a date for approval of the scheme. The CityJet spokesman said this could take place next Monday.

Some unsecured creditors were asked to accept 25p in the pound, and others 10p in the pound. Unsecured creditors offered 25p in the pound include London City Airport, British Aerospace and Aer Rianta, as well as Allied Signal. They are owed £5.88 million, comprising around 70 per cent of the company's £8.4 million debts.

Aer Rianta, the State airports operator, was owed £350,000 and is understood to be writing off around £260,000. The Revenue Commissioners are owed £900,000 and are understood to have written off almost £500,000.

The plan put together by Mr McStay includes raising £4 million from new investors who include Malmo Aviation of Sweden, Yeoman International Holdings, Standard Life and three unnamed private investors.

Malmo is investing £1.75 million in return for a 40 per cent stake. Yeoman is investing £650,000 for 17 per cent of the company. The three private investors are contributing just under £1 million for a 22 per cent stake.

In a statement last night, Mr Pat Byrne, CityJet's chief executive, said the company was delighted that its suppliers had supported it. "We look forward to working with them and our new investors" he said.

CityJet employs 165 at its headquarters in Dublin.