The administrators of an aircraft engineering firm, which was part of the collapsed Monarch Airlines Group, have appointed CAPA to audit the company.
As administrators of Monarch Aircraft Engineering Limited (MAEL), the engineering arm of the Monarch group, KPMG has now appointed CAPA to audit business rates paid out at all the vast aircraft hangars used by MAEL.
The company provided engineering maintenance services from hangars at London Luton Airport and Birmingham Airport. MAEL also ran a training academy, sold aircraft spare parts and provided day-to-day services at other UK airports along with four more in Spain, Poland and the Ukraine.
MAEL’s financial problems began when the wider group of 10 Monarch companies collapsed in October 2017. This left MAEL without its main customer and a number of creditor claims against it, which related to the wider group’s liabilities.
However, MAEL managed to continue trading after the group insolvency, thanks to financial support from a specialist business funder and a company voluntary arrangement (CVA) agreed with creditors.
But after its trading position deteriorated in the latter half of 2018, and a suitable buyout couldn’t be secured in December of that year, MAEL entered insolvency. David Pike, Ben Leith and David Standish of KPMG were appointed joint administrators in January 2019.
They have now instructed CAPA to conduct the rates audit, meaning CAPA’s Audit team will use bespoke software to audit rates paid out at huge hangars leased by MAEL, across eight locations including Luton, Birmingham and Northampton.
The team will interrogate the data to identify any anomalies, errors or overspend, before recovering any overpaid amounts for MAEL’s creditors.
KPMG also appointed CAPA to audit 16 properties across Monarch Airlines and Monarch Travel Group, when the wider group initially entered insolvency in 2017.