CargoLogicAir extends administration period
13 / 11 / 2023
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UK freighter operator CargoLogicAir has extended its administration period as it looks to meet creditor demands.
The airline was last week granted an extension of its administration period by 24 months until November 16 2025.
Following the extension, Jo Milner from the firm’s administrator, Buchler Phillips, said: “It’s normal in particularly complex circumstances like these to seek an extension to the administration.
“This, and the access to bank accounts and records that we have only recently been given, will enable us to accelerate the important job of pursuing realisations for creditors.”
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 administrator has faced difficulties accessing company information and accounts as banks and suppliers had been mindful of the sanctions facing the company.
In order to sell Boeing 747 stock owned by the company, the administrators needed access to information stored on the Trax aircraft maintenance system used by the airline.
However, CargoLogicAir had been blocked from accessing Trax due to unpaid invoices, which couldn’t be settled as there have been delays in the creation of a new bank account due to the sanctions.
The administrators also faced difficulty accessing other electronic records due to Microsoft blocking access to systems in July 2022 due to the sanctions.
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.
At the time, the administrator estimated £17.1m of total assets can be realised including £10.6m in cash, £3m in tax refunds, and £2.2m in stock relating to 747 spares – mostly held at East Midlands, Amsterdam and Frankfurt Hahn airports.
A more in-depth update on the administration process is expected soon.