THE High Court has lifted the examinership of CityJet, the independent Irish airline.
Yesterday it approved the scheme for the survival of the company, to which an examiner was appointed last month. It came into effect at midnight last night.
Mr John McStay was appointed examiner to Business City Express Ltd, trading as CityJet, on December 11th last. It owed creditors £8.4 million and had accumulated trading losses of £13 million. The Revenue Commissioners were the only preferential creditor and was owed around £900,000, although not all of this debt had preferential status.
Under a deal reached with investors and creditors, Cityjet will get £4 million in new capital. Creditors have agreed to write off £6 million. London City Airport, which was owed £2.4 million, agreed to write off £1.8 million of its debts.
The restructured company sees Malmo Aviation, a Swedish regional airline, take 42 per cent, Yeoman International takes 17 per cent and Standard Life Assurance company takes 16 per cent.
Malmo is paying £1.75 million and will provide a further £650,000 worth of leasing and maintenance services. Standard Life is investing £650,000. Four Irish investors are putting in £950,000.
CityJet now has five aircraft at its disposal and plans to concentrate hard on the Dublin/London City route and will continue to target business users.
