Deloitte has earned €347,000 for working on Stobart Air’s liquidation

Accounting firm Deloitte and law firm McCann Fitzgerald earned a combined nearly €500,000 in fees last year for providing liquidation services to Stobart Air.

Ublin-based Stobart Air, the former operator of regional service Aer Lingus, collapsed last year after succumbing to the impact of the pandemic on its business. As a result, 450 employees of the company lost their jobs.

Stobart Air was owned by the British company Esken. In April last year, an Isle of Man startup called Ettyl had planned to buy Stobart Air, but the deal fell through.

Esken then said that it could no longer financially support Stobart Air. The airline collapsed in June last year.

The initial report by Deloitte liquidators Ken Fennell and Mark Degnan shows that Deloitte was paid €347,000 last year for its role in handling the company’s liquidation.

McCann Fitzgerald has received 111,000 euros.

The report also shows that the insolvency administrators made €1.3 million from the sale of aviation inventory, parts and office furniture at Stobart Air. Assets totaling €2.2 million were realised.

This included €283,000 in cash and €319,000 in VAT refunds. The assets also included €277,000 relating to contributions from shareholders and landlords to their overheads at the company.

The insolvency administrators paid sales agent fees of EUR 184,000 and salaries and salary-related expenses of almost EUR 72,000.

The Shamrock Gift Company – owned by businessman Michael Dolan – received almost 80,000 euros in rent.

After the payouts, assets of €790,000 remain.

Aer Lingus regional service is now operated by Conor McCarthy’s Emerald Airlines. Last year the company secured a contract from Aer Lingus to operate the service and started operations earlier this year.

In recent months, Aer Lingus’ regional service has expanded rapidly. This week it announced the launch of new services to Cardiff and Southampton from Belfast City Airport, adding to a number of routes it already operates from the base. It currently operates more than 430 flights per week on 18 routes from bases across Ireland.

Mr McCarthy – once chairman of Stobart Air – has poured millions of euros of his own money into Emerald Airlines. Other investors include John Higgins, the former chief commercial officer of aircraft leasing giant Avolon.

https://www.independent.ie/business/irish/deloitte-has-earned-347000-for-work-on-stobart-air-liquidation-41802484.html Deloitte has earned €347,000 for working on Stobart Air’s liquidation

Fry Electronics Team

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