£700m deficit faced by unsecured Monarch’s creditors

Published on : Thursday, December 21, 2017

monarchA report revealed that the collapse of Monarch Airlines led to a deficit of more than £700 million for unsecured creditors.

 

 

It is said that Monarch owes 500 trade creditors £335.6m, 2,000 employees are owed £35m, and 365,000 customers are owed £95m.

 

The deficiency for unsecured creditors  was put by the administrators at £756.6 million before the sale of Monarch’s slots at Gatwick and Luton.

 

After the failure of the carrier on October 2, KPMG reported that an estimated £27.4 million will be available to pay to the preferential creditors.

 

 

The figure will see a boost of around £60 million after the slot sale by British Airways parent IAG bought the assets at Gatwick, Wizz Air and the Luton slots in November.

 

Air Travel Trust is the biggest creditors claiming £19 million after the repatriation.

 

HMRC has another for £12.5 million and International Aero Engines is owed £15.65 million.

 

Eurocontrol (air traffic control) is owed £12.2 million.

 

Under the EU261 there are various other passenger compensation claims which is estimated at £5.15 million.
Other trade creditors will include Manchester Airports Group (£3 million), Luton airport (£1 million), and Gatwick (£516,000).

 

Iberia is owed £3.4 million and Gibraltar airport £313,000.

 

However,  smaller amounts are due to On the Beach (£290,000), Cheapflights (£23,000), and Holiday Extras (£12,000) among others.
A KPMG spokesperson mentioned the full creditor’s report will be available by next year.

 

 

The Statement of Affairs will be published within eight weeks, while the next will be issued by around six months most probably by the  end of April.

 

 

No date has yet been assigned for the creditors’ meeting.

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