Courts / Dublin / Report

Judge minded to approve survival scheme for CityJet

Summary

A High Court judge, Mr Justice Michael Quinn, said he was minded to approve a survival scheme for the Dublin‑based regional airline CityJet, allowing it to exit examinership as a going concern on a slimmed‑down basis. The scheme, supported by a majority of creditors and shareholders, would write off tens of millions of euros of debt and retain over 140 jobs. CityJet had entered examinership in April, citing insolvency exacerbated by Covid‑19 grounding of aircraft and the interruption of a planned merger. The judge noted that creditors would fare better under the examiner's proposals than if the airline were liquidated. He adjourned the matter to a mid‑August date pending finalisation of arrangements with certain creditors and changes to the airline's constitution. The scheme would see most creditors receive small dividends of 1.5% to 1.25%, a better outcome than liquidation.

Who, what, where, when and why

What: Report matter: Judge minded to approve survival scheme for CityJet. Procedural stage: hearing_or_decision

When:

• 2020-07-29 Publication

Why: Last April the airline sought the protection of the courts, claiming it was insolvent because of financial difficulties which were exacerbated after its aircraft were grounded due to the Covid-19 outbreak. CNI source report

Places mentioned

Topics

Stage Hearing Or Decision

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Read the original CNI report