KPMG racks up fees of £8.6m at Aero Inventory

KPMG administrators of airline parts supplier Aero Inventory UK (AIUK) have
racked up fees of £8.6m.

The latest progress report shows legal fees topping £3.2m in the UK and
abroad while the administrator’s fees coming in at £8,694,958.

James Tucker, Richard Heis and Allan Graham were appointed administrators to
AIUK in November 2009.

The administrators have previously said they believe secured creditors will
be repaid in full and unsecured creditors will receive approximately 1.1p in the
pound.

Preferential creditor claims equate to approximately £122,568 and unsecured
claims stand at £58,571,804.

There have been no acceptably priced offers for the collapsed airline parts
supplier although 44 employees continue to work with the administrators.

The practitioners are hoping to liquidate the business with Tucker, Heis and
Graham appointed liquidators. However, it is likely the trio will apply to court
to have the administration extended beyond the end date of 10 November 2010.

AIUK suspended shares on the main market in October 2009 due to problems with
reported inventory levels in its accounts for both 2008 and 2009.

Further reading:

KPMG
bill £2m for Aero Inventory administration

Aero
Inventory sale delayed by inaccurate data, say administrators

SFO
set for Aero Inventory accounting probe