MK Airlines is back from the brink
22 / 06 / 2008
MK Airlines has resumed operations after a deal was concluded with a new investor on 20 June.
The return to flying followed the Joint Administrators securing an initial funding arrangement with Transatlantic Aviation Limited (TAA), part of The Belfairs Management Group of Companies. MK Airlines immediately restarted trading and flying operations that evening and it has since been operating a near-full capacity flight programme.
Joint administrator Andrew Duncan from BKL Business Recovery, told Air Cargo News that the initial investment protected the airline from further damage caused by the grounding and that the new investors would be working on a Company Voluntary Arrangement (CVA) with creditors.
Once CVA agreements had been reached, TAA would look to invest further and probably buy the airline outright.
Duncan added that TAA were not an equity investor and were investing in the long term.
The following statement from the administrators/MK Airlines gave further details on the investment:
MK Airlines has earlier been in discussion with several interested parties about potential investments in the business to refinance and to reposition the airline with more efficient aircraft. These talks were led by the airline’s founder and chief executive officer, Mike Kruger, and following their appointment, the joint administrators.
A management team from Transatlantic Aviation Limited, is now working alongside the joint administrators and MK Airlines management to assist normal trading of the business.
Kruger, said: “We are delighted to be airborne once again. Within the next weeks and months we hope to return to a level of trading that existed prior to the appointment of our administrators. Whilst we still have some way to go to complete a formal long-term agreement for MK Airlines, this initial funding arrangement with TAA delivers what we hope will lead to a viable and prosperous long-term business strategy.”
Oldham, from BKL, said: “Upon our appointment we talked about our hope that the company could resume flying operations in the short-term. This initial investment from TAA delivered that objective and now presents us with an opportunity to look more confidently towards the future. Over the next few weeks we will be working to propose a formal way forward with MK’s creditors. If we can reach that agreement then we hope to also deliver additional funding that will secure MK’s long-term viability as a highly regarded all-cargo airline.”
The Belfairs Management Group is a diverse international organisation with an asset-base in the medical, property and aviation industries.
Transatlantic Aviation is the jewel in the crown of the group’s global activities. It has a fleet of Boeing 767s and Boeing 747s, serving some of the leading airlines in the world.