450 jobs lost after MAEL goes under.
THE engineering arm of collapsed airline Monarch has fallen into administration, resulting in the loss of 450 jobs.
KPMG has been appointed to carry out the process after Monarch Aircraft Engineering (MAEL), owned by private equity firm Greybull Capital, ran into financial difficulty. KPMG said the business, which had an operation at Birmingham Airport, was "unsustainable in its present form" following a restructuring in October that led customers to seek alternative suppliers.
David Pike, restructuring partner at KPMG, said: "Following the administration of other Monarch entities in 2017, MAEL sought to build its customer base to replace the loss of business from the former airline.
"Through the insolvency of the airline, however, the company inherited significant debts and claims. Every effort has been made to turn around the business, including launching a CVA which sought to resolve these legacy debts.
"Unfortunately, following the CVA, a number of customers reduced or sought to terminate their relationship with MAEL, further adversely impacting the business."