The High Court has appointed a provision liquidator to an Irish registered aviation company.
NAC Aviation 9 Limited became insolvent and unable to pay its debts after it was unable to satisfy a demand from its lender German Bank Norddeutsche Landesbank Girozentrale (Nord) to repay $20m.
The firm, which had until recently formed part of the Nordic Aviation group of companies, owned 5 Bombardier Q400 aircraft.
One aircraft is leased to an Australian operator, while the others are located in Bratislava, Slovakia.
On Friday evening Mr Justice Mark Heslin said he was satisfied to make an order appointing experienced insolvency practioners Declan Taite and Anne O'Dwyer as joint provisional liquidators to the company, which has a registered address at Henry Street, Limerick.
The company, represented by Ross Gorman Bl, instructed by Gavin Simons of Amoss Solicitors, petitioned the court for the appointment of the provisional liquidator.
The firm's difficulties are believed to relate to two of its aircraft's lease arrangements coming to an end.
The court heard that the company had failed to make a payment of $1.5m due to Nord on July 19 last.
As a result of that failure the bank made a demand to be paid the full amount of what it is owed, some $20m.
The company was unable to meet that demand, and sought the appointment of a liquidators to realise the firm's assets, and best protect the interests of the creditors.
The matter will return before the court in October.