Aero Inventory sale delayed by inaccurate data, say administrators

Administrators of collapsed airliner Aero Inventory have been hampered in
beginning the sale of its assets as they continue to attempt to build an
accurate picture of its stock levels and their value.

KPMG’s administrators stated in their report to creditors that they have been
unable to process a sale of the business and/or assets because they are still
trying to determine stock and inventory levels.

They hope to begin the sale process later in January.

The report also shows that tax authorities are owed nearly £19m from unpaid
taxes by Aero Inventory (AIUK).

‘Taxation creditors’ are owed £18.9m – but as an unsecured creditor KPMG said
they were ikely to see just 1.1p in the pound.

Although book value from AIUK stock equates to £343m, administrators estimate
only £147m will be realised. They calculate there are approximate total assets
of £151m, which leaves more than a £200m shortfall for creditors.

In an effort to claw back cash administrators from KPMG has said they are
investigating a recovery of corporate tax by way of terminal loss relief or
other tax offsets.

As announced on yesterday, KPMG has clocked up over £2m in
costs between November and December. The administrators reported Lloyds TSB
Commercial Finance provided them with a $9m (£5.64m) overdraft facility, with
adminnistrators so far spending £450,000 on solicitors CMS Cameron McKenna.

Jim Tucker, Richard Heis and Allan Graham were appointed joint administrators
on 11 November 2009.

Further reading:

bill £2m for Aero Inventory administration

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