High court hears positive outlook for Aer Arann

The High Court has heard a new investor will pump 2.2 million euro in to Aer Arann if it successfully exits examinership.

The airline which flies in and out of Donegal Airport and City of Derry is insolvent with debts of 29 million euro is fighting for its survival.

The examiner’s projections show Aer Arann can return to profitability over the next two years.

3.5 million euros of new investment is to be pumped into the airline, 2.2million of that will be spent on paying off the company’s debts.

This involves a substantial writing down of what is owed by the company.

A third party Tim Kilroe Jnr plans to invest a further 2.2 million euros.

But the Revenue Commissioners which are due over 1.1 million remain dissatisfied and believes they are getting far more unfavourable treatment than other creditors.

It’s for the court to decide whether there is evidence to show the company has a reasonable prospect of survival.