Most of Monarch’s debts to go unpaid

MONARCH Airlines’ former customers, staff and business partners, who were left £466m out of pocket by its collapse last month, are unlikely to recoup anything.

Administrators KPMG said the airline’s owner, private equity firm Greybull Capital, is first in line when about £60m is raised from the sale of Monarch’s valuable landing slots at airports. However, with £157m owed, Greybull is still expected to make a loss on its investment.

KPMG said: ‘As the secured creditors will likely suffer a shortfall, there is no real prospect of a return to unsecured creditors.’

Its report said £600,000 is available to repay unsecured creditors – such as former staff and customers – which is less than the costs of making the payments.