Russian lessor GTLK estimated the loss from liquidation of its Irish business at 2.49 billion roubles

: RusAviaInsider

Russia’s State Transport Leasing Company (GTLK) in its 2023 IFRS report has admitted the loss of 2.49 billion roubles as a result of liquidation of its two Irish subsidiaries last year.

“In compliance with IFRS 10, as a result of the May 31, 2023 decision taken by the High Court of Ireland ordering the start of liquidation procedure of GTLK Europe DAC and GTLK Capital DAC, the company lost control of these entities and their subsidiaries. The financial outcome of the same is loss in the amount of 2491 million roubles,” the report reads.

GTLK and its subsidiaries had been under the European Union and Great Britain sanctions since April 2022, and on US SDN-list since August same year. The sanctions virtually blocked all activities of GTLK’s foreign entities, but the management intended to fulfill its obligations to creditors, GTLK’s then-general-director Roman Lyadov had told Russian media in February 2023.

However, in late May 2023 Ireland’s High Court commenced the liquidation procedure for the subsidiaries of GTLK. Since then, management of the companies was transferred to the liquidators assigned by the court. They are now in charge of selling the companies’ assets to generate cash flow and cover the outstanding debts to its creditors, including holders if Eurobonds, says GTLK in its report.

GTLK Europe owned 66 aircraft. Of these, 37 aircraft had remained outside Russia and could not be reached by the lessor due to sanctions imposed.