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140 CityJet jobs set to be saved as survival scheme is approved

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The High Court approved a survival scheme for Dublin-based regional airline CityJet

The High Court approved a survival scheme for Dublin-based regional airline CityJet

The High Court approved a survival scheme for Dublin-based regional airline CityJet

The High Court has formally approved a survival scheme allowing regional airline CityJet to exit examinership.

The scheme will see the Dublin-based airline continuing as a going concern, with more than 140 jobs at the company being saved.

It had previously employed more than 400 at its Dublin base.

Satisfied

Mr Justice Michael Quinn said yesterday he was satisfied to approve a scheme of arrangement put together by the airline's examiner, Kieran Wallace of KPMG, which allowed the airline to formally exit examinership yesterday afternoon.

Late last month, the judge, following a formal hearing, said he was minded to app-rove the scheme after certain steps, including the finalising of arrangements made with certain creditors and when changes had been made to the airline's constitution.

The court was told yesterday that those arrangements and changes have been made and no modifications to the survival scheme were required.

As a result, the judge formally approved the scheme.

Supported by a majority of the airline's creditors and shareholders, it also sees tens of millions of euro of its debt being written off.

Last April, the airline sought the protection of the courts, claiming it was insolvent due to financial difficulties that were exacerbated after its aircraft were grounded by the Covid-19 outbreak.

The impact of the pandemic also interrupted a planned merger with another airline and a proposed private restructure of the company, it claimed.

CityJet said it had debts of €500m, and at the time of entering the examinership process had a net deficit of liabilities over assets on a going concern basis of €186m.

Mr Justice Quinn, in app- roving the scheme, accepted that creditors would do better under the examiner's prop- osals than if the airline was liquidated, which the court was told was the only alternative to the scheme.