Russia Bails Out Parent Company of Ireland’s Transaero Engineering

Posted: January 7, 2015 in Econ 101, Sanctions on Russia Meaningless, Technology and Energy

SOURCE: http://www.irishtimes.com/business/transport-and-tourism/russia-bails-out-parent-company-of-transaero-engineering-ireland-1.2057043

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Russia bails out parent company of Transaero Engineering Ireland

The €120m bailout could aid efforts to save 235 jobs in Ireland

At the 2012 launch of Transaero Engineering Ireland were  Alexander Krinichanskiy, Joseph Millar and William McGonagle, chief executive of Transaero Engineering Ireland, at their Shannon Airport facility. At the 2012 launch of Transaero Engineering Ireland were Alexander Krinichanskiy, Joseph Millar and William McGonagle, chief executive of Transaero Engineering Ireland, at their Shannon Airport facility.

A €120 million Russian government bailout for the parent of aircraft maintenance specialist Transaero Engineering Ireland (TEI), could aid efforts to save the company’s 235 jobs.

The High Court appointed Michael McAteer of Grant Thornton as interim examiner to TEI this week, and barred creditors from seeking repayment of their debts, to allow time for the company to be rescued.

According to reports, Russia’s government has bailed out TEI’s parent, Moscow- based Transaero Airlines, with a nine billion rouble three-year credit line.

The move has raised hopes that Mr McAteer will be able to seek repayment of €2.93 million due to TEI from its parent for maintenance on the Russian carrier’s craft and retain it as a customer.

TEI had been carrying out work for Transaero at cost and its parent’s financial difficulties, rooted in Russia’s economic crisis, are partly to blame for the problems that forced it to seek protection from its creditors.

A TEI statement released following the court hearing indicated the proposals for rescuing it were focused on the company’s other clients and recruiting new ones.

The prospect of being able to recoup the cash due from Transaero and add the carrier to its customer base could ease the examiner’s task.

Transaero is Russia’s second biggest airline. A large number of its craft are registered in the Republic, as they are leased through finance companies operating here.

TEI employs 235 people in Shannon where it carries out heavy maintenance and repair on Boeing craft for a range of customers .

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