High Court wants NI to accept Aer Arann protection

THE HIGH Court is to send a letter asking its counterpart in Northern Ireland for recognition of the court protection granted to Aer Arann last week.

The purpose of the letter is to ensure that none of Aer Arann’s aircraft is seized by anyone owed money while the airline is in examinership.

An interim examiner was appointed late last Thursday to the airline, which employs more than 300 people, by Ms Justice Maureen Clark at the High Court.

The court heard that Aer Arann, which had lost millions of euros in recent years, was seeking to be placed into examinership in order to reorganise its affairs. The court also heard that the airline had a reasonable prospect of survival if certain steps were taken.

At the High Court yesterday, Mr Justice Peter Charleton agreed to send a letter to the High Court in Northern Ireland seeking recognition of the examinership process in this jurisdiction.

The judge was informed that the company was making the request for judicial assistance amid concerns over Aer Arann’s aircraft that operate flights to and from City of Derry and Belfast airports.

Mr Justice Charleton said he had no hesitation in agreeing to something that “would assist in the administration of the examinership of Aer Arann”.

Declan Murphy for Comhfhorbairt Gaillimh, the company which operates Aer Arann, said Ms Justice Clark had agreed to the company’s request to send similar letters requesting judicial assistance to the courts in other jurisdictions that Aer Arann operates out of including Scotland, England and the Isle of Man.

Mr Murphy said it had subsequently had been deemed necessary to make a similar request for recognition of the examinership process to the Northern Ireland High Court. This step was aimed at preventing creditors from seizing any of the airline’s aircraft while in that jurisdiction.

Last week Ms Justice Clark appointed accountant Michael McAteer of Grant Thornton Chartered Accountants as interim examiner to the airline after being informed that an independent accountant’s report revealed that Aer Arann had a reasonable prospect of survival as a going concern.

The airline, in seeking the protection of the court from its creditors, cited the drop in passenger numbers caused by the global economic downturn as well as the disruption caused to flights by the Icelandic volcano earlier this year as the main reasons behind its financial difficulties.

The court heard that the airline was seeking the protection of the court because it was currently insolvent and could not pay its debts. However the court was also informed that a number of prospective investors had entered into talks with the airline.

The matter is due back before the High Court next week.