Transaero, which employs 235 people at Shannon, is unable to meet its debts because of economic difficulties in Russia and by its Russian parent company, the High Court was told today this week.
Mr Justice Bernard Barton appointed Grant Thornton chartered accountant, Michael McAteer as interim examiner to Transaero Engineering Ireland (TEI), a globally approved maintenance, repair and aircraft overhaul company.
Barrister James Doherty told the court that TEI, which had a turnover of €27 million in 2010/11, was an Irish-registered company, which had been generating relatively modest profit and had been taken over by Transaero Airlines in 2012.
He said increased pressures had been put on TEI’s profitability by its parent company, which had required it to carry out work for it on a cost only basis, which had eaten into its profits.
Mr Doherty said the company was seeking the appointment of an interim examiner to stabilise its position and give comfort to employees that their situation is being protected in the short term. He said that during the 10-week period of court protection against any potential predatory creditor, Mr Mc Ateer would be attempting to put together a rescue scheme of arrangement which would hopefully ensure the survival of the company, as a going concern.
Shannon Airport Authority Plc was the main creditor and other creditors, including Boeing, for which TEI did a lot of work, would be put on notice of the appointment of the interim examiner.