KPMG administrators relaunch Aero
Administrators agree deal with DHL to transfer Aero stock to a new distribution centre, ahead of a relaunch
ADMINISTRATORS FROM KPMG have agreed a deal that relaunches the insolvent aircraft parts business Aero.
The majority of Aero’s $400m (£246m) of stock has been transferred to a new DHL distribution centre.
The administrators will continue to run Aero, build new customer relationships, and attempt to sell the business as a going concern. the three-year deal is worth €10.6m (£9.1m) to DHL.
The restructured business will take orders from Q2 2011, and is expected to be fully operational by the third quarter. At this point the business is expected to go back on the market.
“It has been a mammoth task to consolidate Aero’s 25 million parts and their associated trace documents – which give the airline purchaser certification of where the part was manufactured – spread across over 100 locations around the world,” said KPMG partner and Aero joint administrator Jim Tucker.
“While we previously received buyer interest in the business, the offers reflected the lack of visibility of Aero Inventory’s stock and its dispersal around the world. We believe the restructured business will attract a far higher level of buyer interest.”