Appointment of Interim Examiner to Transaero Engineering Ireland.
Transaero Engineering Ireland (TEI) confirms that, on 5th January 2015, it requested Court Protection and the High Court appointed Michael McAteer of Grant Thornton as Interim Examiner to the company with a view to presenting a restructure plan to ensure the company’s future.
The global geo-political and economic climate has been having increasingly negative effects on TEI’s parent company, the Russian airline Transaero Airlines. The combined impact of the EU/US trade sanctions, geo-political tensions, the fall in the price of oil and the Rouble currency crisis continue to impact on economic activity within Russia and between many of its main trading partners. Business and leisure travel has been increasingly hit with a direct impact on airlines. Also the funding of business has severely impacted by the difficulties being faced by financial institutions in Russia.
This has created serious financial difficulties for Transaero Airlines who rely on the support of the Russian banks and make many of their payments in Euro and Dollars. The net effect of these events has resulted in TSO seeking Russian government support/financial aid.
Transaero Airlines is, for the moment, not in a position to pay TEI moneys due for services rendered and has indicated that it is not in a position to support TEI on an ongoing basis. TEI intends to use the court protection period to restructure its business and to work with its existing core base of quality customers. TEI is confident that, in addition to the current customer base, a number of new third party customers will be secured to enable it create a strong business going forward. The company will continue to trade as normal during the period and wishes to thank all of its suppliers, customers and over 230 employees for their continued support. Furthermore the company is having initial contacts with a potential investor with a view to securing an investment that will put the company on to a solid footing. It is anticipated that an arrangement could be reached within the timeframe of the examinership period.