Shepherd and Wedderburn has won the mandate to advise the UK administrators of Canada’s Zoom Airlines after the low-cost airline filed for bankruptcy.
In Canada, law firm Bennett Jones is acting for the bankruptcy trustee after the Canadian arm of Zoom also filed for bankruptcy.
Insolvency partner Fiona Paterson at Shepherd and Wedderburn is leading the team advising the administrator PKF.
PKF ;partner ;Anne Buchanan said: “We have a good relationship with Shepherd and Wedderburn and have worked together quite a lot over the years on various insolvency appointments.”
In the past PKF has also drafted in LG, which it used on the 2005 administration of The Gadget Shop.
It is expected that there is only a small chance of saving the UK operations of Zoom, with more airlines expected to suffer a similar fate in the coming months. An insolvency partner involved in the case said: “I think Zoom is indicative of the whole industry – it’s the tip of the iceberg.”
In Canada, the Bennett Jones team is led by insolvency partner Justin Fogarty. He explained that under Canadian law companies file for bankruptcy if there is no reasonable likelihood that a proposal could be made either through the liquidation of the business or by making a compromise with the creditors.