CargoLogicAir (P3, London Stansted) is unlikely to be sold as a going concern, but an unnamed Dutch cargo company has shown interest in purchasing the defunct carrier's systems and documentation to assist with its own application for an air operator's certificate (AOC).

This is according to the latest progress report for the period November 16, 2022, to May 15, 2023, by CargoLogicAir's joint administrators, UK firm Buchler Phillips. They said the Dutch firm contacted them to obtain CargoLogicAir's AOC. "The AOC is not a saleable commodity, but if the company is sold as a going concern, it will remain in the company's name and will continue to be in force. It is [however] unlikely that the company will be sold as a going concern, but the interested party are keen on purchasing the company's systems and documentation, which will assist with their own AOC application," they disclosed.

As reported, the UK-based cargo specialist entered administration late last year after its business was affected by the sanctions against Russia over the invasion of Ukraine. Its majority shareholder and former director, dual Russian and Cypriot national Alexey Isaykin, is subject to UK government sanctions against Russian-controlled businesses.

In the latest update, the joint administrators disclosed that they expect further litigation to retrieve GBP4.3 million in deposits paid to Aircastle and WWTAI Airopco 1 Bermuda Limited (WWTAI), consisting of GBP1 million and GBP2.2 million, respectively, relating to two B747s. They said WWTAI filed a strike-out application regarding the deposit, dismissed on March 13, 2023, but legal proceedings were stayed until July 13, 2023.

The joint administrations said they expect to realise sufficient funds to make a distribution to creditors from USD2.6 million in stock, USD13.4 million in cash, and USD4.2 million in tax refunds.

They said the airline is due a tax refund of GBP3.3 million (USD4.2 million) after having paid more than GBP6 million (USD7.6 million) in corporate tax since its inception. It has GBP2.1 million (USD2.6 million) worth of stock, mainly B747 parts, most of which are held at Nottingham East Midlands, Amsterdam Schiphol and Frankfurt Hahn.

At the commencement of administration, CargoLogicAir had four bank accounts at Citibank with balances of USD12.2 million, EUR745,614 (USD814,046), RUB0.00 (USD0.00) and GBP237,902 (USD304,275), totalling cash of GBP10.5 million (USD13.4 million). The estimated book value of the company's debt is GBP1.2 million (USD1.5 million).

There are no secured creditors, but preferential claims from 102 employees totalling GBP1.1 million (USD1.4 million) are expected to be paid in full before the end of administration. Employees also have unsecured creditor claims of GBP2.9 million (USD3.8 million) against the company.

In addition, 110 unsecured creditors, not including employees, have claims of GBP8.2 million (USD10.4 million).

Of these, 32 trade creditors have submitted claims for GBP731,547 (USD935,548), with a further 78 trade and intercompany creditors expected to submit claims, bringing the total debt of the company to GBP5.2 million (USD6.7 million).