Monarch Airlines owed customers, staff and suppliers more than £466m when it collapsed into administration at the start of October, according to a filing by KPMG on Friday evening.
Such unsecured creditors are unlikely to recoup what they are owed, as the carrier also had higher ranking debts of £164m – which will soak up almost all of the cash administrators KPMG can recover from selling assets.
The Joint Administrators' proposals revealed the airline group has three principal realisable assets: £27.8m of cash, take-off and landing slots – which are estimated to be worth £60m – and shares in Monarch's engineering business.
KPMG estimated "the value is likely to break in the secured debt". This means it is thought the assets and cash are worth less than £164m. It also suggests former owner Greybull is likely to take a loss from its investment.
The majority of senior debt is payable to Greybull. But sandwiched in between is £7.5m owed to the Pension Protection Fund (PPF), a legacy loan structured as part of the Monarch pension fund being jettisoned into the lifeboat in 2014.
Insolvency rules mean a small amount of money must be set aside for the £466m of unsecured creditors. KPMG estimated this would total just £600,000, but that it would cost more in time and material expenses to recover such an amount.
KPMG won a Court of Appeal ruling on Wednesday over the take-off and landing slots at Gatwick and Luton. The firm said it was "in the process" of completing the slots sale.
The accountancy firm estimated its fees will total £5.2m, with expenses – which include legal and employee costs – set to top £9.9m.