News / Cargologicair sells off remaining stock and redundant staff can be paid

The remaining stock of Cargologicair, still under administration, is soon to be sold.

The formerly Russian-owned UK airline, which has now severed all ties with sanctioned owner Alexei Isaykin, is no longer under sanctions itself, and the administration is able to wind up the company. 

Valuation agents Lambert Snith Hampton (LSH) aims to complete a sale of the stock left at Schiphol for $390,000, plus VAT, by the end of the year – but the stock has also incurred high storage costs during the process, of some €90,000 ($93,500).

LSH has also announced a sale of the stock at Frankfurt Hahn, worth between $200,000 and $250,000, which has incurred some €53,000 in storage costs. The agent already sold stock at East Midlands Airport for £250,000. 

“There may be further small realisations from stock held at various other locations, which LSH is exploring. However, due to the limited amount of stock held at these locations and storage costs, it is unlikely to bring any further realisations to the administration estate,” noted the administrator’s progress report. 

UK carrier One Air has taken one of the aircraft leases, the other is held by AC SPE 10. All aircraft records have now been delivered to the lessees. Of its other aircraft, one is now operated by Atlas, another by National. 

With Cargologicair no longer under an asset freeze, the remaining secured creditors – which include staff – can be paid.

During the asset freeze, Microsoft deleted records, and companies involved in the winding up are considering action against the IT company, which binned financial and tax records, as well as invoices, contributing to further losses.

However, the company is now able to access its bank accounts, which it had been prevented from doing. The administrators are continuing to chase debtors, of which 34 owe some £1.9m, while a further four owe £6.3m, which is unlikely to be recovered, owing to sanctions, said the administrator. 

The administrators have adjudicated unsecured claims worth £1.3m from 104 employees, while all pensions have now been finalised, and the payout for ordinary preferential creditors – ie, staff – has been agreed. All have now been made redundant, but the administrator, which stated there was some £5m in bank accounts, warned that unsecured creditors may not get their money back. 

The winding up period has been extended until November next year.