Sister companies in Avia Solutions Group bear the brunt of losses caused by carrier’s closure.
Shuttered UK wet-lease specialist Ascend Airways has a total deficiency of over $51 million, including more than $30 million owed to sister companies in Avia Solutions Group (ASG), newly released documents disclose.
Ascend was placed into voluntary liquidation in late April, with the company citing high fuel prices and structural challenges related to its UK air operator certificate (AOC) in the European market.
Insolvency specialists from Price Bailey were subsequently appointed to wind up the firm.
In a statement of affairs dated 11 May, but filed to the UK’s Companies House register on 28 May, Ascend’s total assets are placed at a little over $1 million.
However, that figure is dwarfed by the firm’s liabilities. Notably, the UK’s tax authorities are owed $1.47 million in income tax and National Insurance payments, plus a further $1.53 million in Airline Passenger Duty.
Employees too are owed £356,000 in wage and holiday arrears, alongside another £822,000 in redundancy payments and other expenses.
Lessors account for a further $3.7 million, the statement of affairs reveals.
But the biggest sums are owed to ASG companies, including: $29.4 million to ASG Finance, $1 million to sister carrier KlasJet, £844,000 to MRO firm FL Technics, £240,000 to ASG, and £14,000 to parts specialist Locatory.
In total, ASG entities are owed $30.7 million with its shareholding in Ascend – valued at $5.1 million – also written off.
Ascend’s total deficiency is calculated as $51.5 million, the document shows.
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