Insolvency proceedings of CargoLogic Germany imminent
Insolvency proceedings should be opened shortly against CargoLogic Germany (CLG), according to the administrator of the airline.
In an update, a spokesman for insolvency administrator Lucas Flöther said the company will soon have to start paying staff salaries again. These costs were previously guaranteed for three months under the insolvency programme.
And it is unlikely that a buyer of the airline, whose fleet has been grounded under sanctions related to the Ukraine-Russia war, will step in and therefore the company will be liquidated.
“With the exception of one interested party, all potential investors have bailed out,” the spokesperson said. “The reason was apparently a great reluctance to invest in a company of Russian origin.”
“It is all the more regrettable that the insolvency administrator, Prof. Dr. Lucas F. Flöther, had succeeded in allowing flight operations to continue despite the existing sanctions.
“He remains an interested buyer now, but is expected to make a decision this week, which is seen as rather unlikely.”
The administrator said the approximately 40 remaining employees will have to be made redundant in the coming days, although some of those employees will be kept on for a while to help the insolvency administrator wind up the business.
The airline was declared insolvent earlier this year, when the German Federal Aviation Authority (LBA) blocked the carrier from European Union airspace from March 11, except for emergency landings and overflights emergency.
Since then, the company’s four B737 freighters have been stuck at various airports.
CLG was prevented from flying by the federal authority as part of the sanctions against Russian airlines, despite the carrier being a German company with an air operator’s certificate (AOC) issued by the LBA.
From a purely corporate point of view, CLG is a German subsidiary of Cargologic Holding registered in the UK.
But according Air Cargo News’ sister post DVZ, the German Federal Ministry of Economics names Alexey Isaykin and Sergey Shklyanik as owners and adds: “Both owners are Russian citizens.
However, according to British commercial register entries, Isaykin and Shklyanik are Cypriot nationals.
Prior to the ban, the company employed 110 people and was based at Leipzig Airport.
CargoLogic Germany declared insolvent