CargoLogicAir - Case Update

David Buchler and Jo Milner of Buchler Phillips, the joint administrators of CargoLogicAir, have provided updates on several significant developments in the administration of the troubled cargo airline.

Significantly, the company’s parent company, Cargo Logic Holding Limited, was dissolved on 7 November 2023 by way of compulsory strike off. This means there is no longer a link between the company and Alexey Isaykin, who is subject to sanction, because the shares are deemed bona vacantia and automatically vest in the crown. This potentially means CargoLogicAir is no longer subject to sanctions, and the joint administrators are in the process of getting counsel’s opinion.

With respect to asset sales, the company’s aircraft stock at East Midland Airport has been sold, while the sale of the aircraft stock at Amsterdam Airport and Hahn Airport remains ongoing.

Unfortunately, issues with Microsoft remain unresolved, as Microsoft have confirmed they deleted all company records before the commencement of the administration. The joint administrators are exploring potential claims against Microsoft should they be unable to recover certain assets as a result of the missing records.

Finally, employees claims have been adjudicated and a dividend to preferential creditors has been declared since the end of the last reporting period.

The joint administrators’ latest report can be found HERE. They have been assisted by DLA Piper.