CargoLogicAir’s stock at Amsterdam Airport Schiphol in the Netherlands and Hahn Airport in Germany is anticipated to be sold by the end of this year, as administrators continue to wrap up the affairs of the defunct UK freighter operator.
In the latest six-month progress report, the airline’s joint administrator, Buchler Phillips said that valuation agents Lambert Smith Hampton (LSH) aim to complete a sale of the stock at both Schiphol and Hahn by the end of the year as storage costs mount up.
Buchler Phillips said: “LSH advised us on 15 November 2024 that they are aiming to complete a sale of the stock in Amsterdam Airport for USD 390,000 plus VAT before the end of the year.”
The administrator noted that CargoLogicAir incurs monthly storage costs of €15,000 at Schiphol and LSH is currently in rent negotiations “because of the considerable amount paid in the Administration which has meant that the net benefit of realising the stock is minimal”.
Buchler Phillips added that: “LSH advised on 15 November 2024 that they are aiming to complete a sale of stock in Hahn Airport for USD 200,000-225,000 before the end of the year.” Again costs will eat into the final amount with the settlement of storage costs estimated to be €53,000.
The administrator also noted that in the last progress update, it was reported that an offer of $385,000 plus VAT had been confirmed for stock held at East Midlands Airport in the UK.
CargoLogicAir operated four Boeing 747 freighters at its peak, but according to fleet tracking website Planespotters, one 747-400F and one 747-8F left the fleet in December 2019.
The airline entered administration in 2022 after it was forced to halt services following sanctions relating to the conflict in Ukraine that prevented it from flying to European Union and US destinations.
Meanwhile, the airline’s ultimate beneficial owner, Alexey Isaykin later found himself on a UK sanctions list related to the war.
In October 2023, CargoLogicAir’s statutory period of administration was extended until November 16 2025 due to the difficulties Buchler Phillips has faced accessing records and creating bank accounts due to the sanctions.
This June, Buchler Phillips said it had been unable to access Microsoft Azure and Microsoft 365 subscriptions since it was appointed and this was “severely hampering the progress of the administration”.
However, the company said that since legal action was threatened, Microsoft Ireland Operations Limited (MIOL) has started engaging with the administrators.
Debt recovery is ongoing. To date, Buchler Phillips has received over £41,000 from three debtors of CargoLogicAir. It also expects to receive over £206,000 from other debtors. Staff pension contribution payments have also been completed and the pension scheme has been closed.
