Insolvent TEI To Restructure

Irish MRO Transaero Engineering Ireland (TEI) has been granted court protection from its creditors in a bid to rescue the firm from insolvency while it restructures.

The maintenance company, formerly Air Atlanta Aero Engineering, is in financial difficulties after its parent company, Russian carrier Transaero Airlines, failed to pay its bills.

The carrier bought the MRO firm in 2012 and has been paying for maintenance services on a cost-only basis, however, international sanctions on Russia and the crash in the value of the ruble have left Transaero struggling financially.

The airline has secured a nine billion ruble credit from the Russian government, but is “not in a position to pay TEI moneys due for services rendered and has indicated that it is not in a position to support TEI on an ongoing basis,” a statement from TEI confirmed.

On Monday (January 5) the Irish courts granted Shannon-based TEI a 10-week period of protection from “predatory creditors” and appointed an interim examiner for TEI who is to work on a restructure plan.

A statement on the MRO’s website, says: “TEI is confident that, in addition to the current customer base, a number of new third party customers will be secured to enable it create a strong business going forward.”

The firm, which employs 237 people, says it will continue to trade as normal and has already made moves to secure an investment that will “put the company on to a solid footing”.

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