Aer Arann protection extended

The High Court has extended court protection for Aer Arann to next Friday when it will be asked to approve survival plans for the troubled airline.

Ms Justice Mary Finlay Geoghegan was told today a majority of the airline's creditor classes had met and approved the scheme of arrangement put forward by examiner Michael McAteer of accountancy firm Grant Thornton.

Rossa Fanning, for the examiner, said, of 16 creditor classes, 12 had voted on the proposals of which nine were in favour. Four meetings were inquorate, and these would be reconvened this week.

Counsel said the Revenue Commissioners - which are owed some €2 million - had voted against the terms on a "principled" basis while there was also opposition from another creditor, ATR, although he believed the latter's position had since modified. It is understood the Revenue opposed the terms offered to preferential and super preferential creditors.

Mr Fanning said he did not anticipate further objections to the proposals and added the examiner was anxious for commercial reasons that the court deal as soon as possible with the application for confirmation of the scheme of arrangement.

Ms Justice Finlay Geoghegan said she would do so on Friday next and she also made directions for the relevant parties to be notified of the hearing prior to that.

The judge also received Mr McAteer's report detailing the proposals put to members and the outcome of each of the creditors meetings.

Creditors of Aer Arann are owed some €29.5 million but are set to receive just €2.2 million from the airline’s new investors in settlement of their debts. Mr McAteer has agreed an investment of €3.5 million with UK transport group Stobart and businessman Pádraig Ó Céidigh, who owns the airline. Under the terms proposed, they will purchase Aer Arann for €1.