Chances of Zoom return ‘very slim’
09.09.08
An UK administrator appointed for failed transatlantic airline Zoom says chances of reviving the business are ‘very slim’.
Administrators PKF have begun the process of assessing the company’s debts and assets. They are acting in the UK following the grounding of Zoom flights on August 28, with a separate administrator acting in Canada.
PKF senior partner Anne Buchanan, who is leading the UK administration team, said: ‘It is clear even at this stage that at the heart of the airline’s difficulties was the very substantial increases it faced in the price of aviation fuel coupled with the deteriorating economic situation. Although a re-financing package appeared imminent just before the airline failed, it could not be completed before Zoom was overwhelmed by the demands of suppliers and creditors.
‘As administrators we will examine every possible avenue to resurrect the business and some discussions have taken place. However, the chances of succeeding are very slim and we must remain realistic about the outcome.'
‘Although we are at a very early stage of our financial investigation, we cannot be optimistic that there will be sufficient funds available to pay a dividend to the unsecured creditors.’
Zoom Airlines comprised two companies, Zoom Airlines Inc. in Canada and Zoom Airlines Ltd based at Gatwick. Zoom Airlines Ltd operated scheduled flights from Gatwick to New York, Bermuda, San Diego and Fort Lauderdale.
Separate insolvency practitioners, Doyle Salewski Inc. in Ottawa, have been appointed in Canada to handle the affairs of Zoom Airlines Inc., which operated routes between Canada, the UK and Europe.
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