CargoLogicAir administration to progress after bank account secured
18 / 12 / 2023
CargoLogicAir’s joint administrators have secured access to a bank account that will allow the administration process to progress.
In a progress report, the airline’s administrator Buchler Phillips said that they had secured the bank account in October after a delay caused by sanctions related to the war in Ukraine.
A deal with the bank was agreed in May but a bespoke sanctions compliance process was required delaying the opening of the account.
The lengthy process required the company to obtain a two-year extension to the mandatory administration period, which was due to run out in November.
The lack of a bank account had been holding up the overall process as without it payments could not be made to IT service providers, which were required to enable the establishment of the company’s assets and liabilities.
In October, the company was able to gain access from Microsoft to some electronic records, which had been blocked since July 2022 because of the sanctions regime.
Access was also granted by Trax to aircraft stock records kept in its aircraft maintenance stock system after payments were made.
This will allow the company to move forward with selling Boeing 747 stock.
Since the bank account was created, the administrators have also been able to access storage facilities that contained various records.
However, access to some software still has not been restored by Microsoft and the administrators are looking to take legal action to gain access.
“The lack of access to Microsoft records is severely hampering the progress of the administration,” the progress report stated.
UK-based CargoLogicAir, which operated Boeing 747 freighters, was forced to halt services in 2022 after sanctions relating to the Ukrainian conflict prevented it from flying to European Union and US destinations.
The company is UK-registered but has links to Russia.
In a previous update, the administrator said that it was unlikely the airline would be sold as a going concern.
In January, the administrators said they expect to realise sufficient funds to pay all creditors in full.
