CargoLogicAir Ltd – administration

CargoLogicAir Ltd, a UK freighter operator, entered administration on 16 November, with David Buchler and Jo Milner of Buchler Phillips being appointed Joint Administrators. The Joint Administrators stated that the administration was “a very unfortunate, unintended consequence of sanctions generally applied against British businesses perceived as Russian-controlled”, and that the company had been “unable to trade effectively since its majority shareholder and former director, a Cypriot national, was made the subject of UK government sanctions against businesses deemed Russian-controlled following the invasion of Ukraine in February.” Although the company had considerable funds in its bank account, which should have left it solvent, a source said that “every attempt by [the company’s] management to wind the company down and assist staff was stopped because of the sanctions.” The company employed approximately 130 people prior to the sanctions, and turned a profit in 2020. Arosa Leasing Limited and Barclays Bank PLC each has a registered charge against the company.