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.
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