Aero Inventory creditors to get 1p in £1

FRUSTRATED creditors of collapsed airline Aero Inventory are likely to be able to claw back just 1.1p in every pound owed to them by the company, administrators KPMG have revealed.

A progress report by KPMG– which has so far racked up £8.7m in administration fees while attempting to root out the finer details of Aero’s financial position – said the company’s stock has an original equipment manufacturer value of around £441m. However, it added that the realisable value would be far below that due to the lack of stock documentation available and that achieving that value could yet take “some years”.

KPMG has been touting the business around to potential buyers, though it does not expect to achieve a sale. Around 71 parties originally registered their interest, including private equity buyers like Jon Moulton’s Better Capital. Of those, just seven submitted formal expressions of interest and no final offers have yet been forthcoming “at an acceptable price”. Aero had a market capitalisation of £140m when its shares were suspended last year.