05:19, October 02 366 0

2017-10-02 05:19:08
Freshfields advises as Monarch enters into administration

Freshfields Bruckhaus Deringer has been drafted in by the administrators of Monarch Airlines, as the UK budget carrier collapses.

Freshfields’ team is led by global head of restructuring Ken Baird and partner Catherine Balmond. The firm was appointed by administrators from KPMG following the emergency talks between the airline and regulators ended at the weekend over Monarch’s future.

Monarch, which runs the UK’s fifth-largest airline, flies to around 40 destinations from five UK airports and employs around 2,100 people. Package holidays account for about 5 per cent of its revenues.

Administrators from KPMG, is led by the accountancy firm’s partner and head of restructuring in the UK Blair Nimmo, and consists of partner Jim Tucker, associate partner Mike Pink and director Steve Absolom.

According to CAA’s website, Monarch Airlines has ceased trading with immediate effect, leaving 110,000 customers overseas and in the region of 300,000 future bookings cancelled.

CAA chief executive Andrew Haines described the airlines’ collapse as “the biggest UK airline ever to cease trading”.

The group has been struggling in recent years due to intense comptition in the aviation sector. In 2014, the airlines instructed a raft of UK firms to adivse on the rescue of the Monarch Group by investment firm Greybull Capital, with Freshfields playing a key role.

The magic circle firm took the lead role for the airline in the restructuring, led by finance partner Adam Gallagher and corporate partner Martin Nelson-Jones.

The struggling travel business, which was previously owned by the Mantegazza family for 46 years, was acquired by turnaround specialist Greybull Capital for a nominal sum through the transaction.