Airline’s engineering arm enters administration

Sat, 05 Jan 2019 | ADMINISTRATION



Monarch’s last surviving division has fallen into administration following a series of financial difficulties.

The airline’s engineering arm, Monarch Aircraft Engineering Limited (MAEL), was forced to call in administrators from KPMG just a year after the parent company collapsed.

David Pike, the appointed administrator and restructuring partner at KPMG, said: “While it is pleasing agreements with a number of operators have been secured to ensure continuity of service at the majority of MAEL's line maintenance stations, with only partial offers forthcoming for the rest of the business, the directors have taken the difficult step to appoint administrators.”

MAEL was previously acquired by private equity firm Greybull Capital in an attempt to save and retain one remaining part of the business but claimed the business had turned “unsustainable in its present form” after October restructuring resulted in a loss of customers.

Pike continued: “Following the administration of other Monarch entities in 2017, MAEL sought to build its customer base to replace the loss of business from the former airline.

“Through the insolvency of the airline however, the company inherited significant debts and claims. Every effort has been made to turn around the business, including launching a company voluntary administration (CVA) which sought to resolve these legacy debts.

“Unfortunately, following the CVA, a number of customers reduced or sought to terminate their relationship with MAEL, further adversely impacting the business.”

The professional services company stated that it is in the process of finding buyers for Monarch’s fleet technical support division and its training academy, which in total employs 80 people.

For more news stories about administrations click here. For all our administrations listings, click here.


Share this article



Latest Businesses for Sale

Ship Repair Company - Acquisition Opportunity
Essex, UK Wide

Our client has a long heritage in the commercial and military ship repair industry, during which time it has established a reputation for fast delivery and quality service provision. Offers invited.

Asking Price: Offers Invited
Turnover: £14,635,000

Engineering Company
East Midlands, UK

Specialises in the design and manufacture of bespoke, high-quality and high-performance products, boasting an extensive range of specialist services, such as design and manufacture, sheet metalwork, steel fabrication and welding and CNC and conventio...

Asking Price: Offers Invited
Turnover: £3,000,000

LEASEHOLD


Civil Engineering Services & Hire Equipment for the Rail Industry
UK Wide

Operates nationally, providing services for a diverse range of prestigious, blue-chip organisations. Offers invited.

Asking Price: Offers Invited
Turnover: £2,570,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
22
 
Mar
 

Scunthorpe nightclub up for sale | BUSINESS SALE

A former nightclub based in Scunthorpe has been put up for s...

 
21
 
Mar
 

Kent Logistics provider completes a successful acquisition | BUSINESS SALE

A Kent-based personalised logistics provider, backed by Livi...

 
20
 
Mar
 

Warrington construction company enters administration | ADMINISTRATION

A prominent construction business headquartered in Orford Gr...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
25
 
Oct
 

Yorkshire manufacturer completes MBO | MBO/MBI

Senior Architectural Systems, a window and door manufacturer...

 
16
 
Aug
 

Steel fabrication firm enters administration | ADMINISTRATION

Rippin Limited, a Scottish structural steel manufacturer, ha...

 
18
 
Jul
 

Restaurant group Gaucho on the verge of administration | ADMINISTRATION

Gaucho restaurant group faces going into administration as i...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources