NEARLY £2 million of Blue Islands’ debt to the government was recovered through liquidation proceedings in the first quarter of this year, the Treasury Minister has revealed – with work to recover further funds ongoing.
The update was provided in a Finance Law Delegation Report presented to the States by Senator Alan Maclean on Thursday.
When Blue Islands collapsed in November, previous Treasury Minister Elaine Millar confirmed that Blue Islands owed the Government of Jersey more than £9 million.
This included £7m of an £8.5m loan given during the pandemic and £400,000 of interest on that loan, as well as further financial support of £1.2m and £500,000 provided in September and November respectively.
The recently published report noted that the airline “is currently subject to liquidation proceedings” and that, as of 30 June, “the outstanding balance of loans to the company had fallen to £7,382,822 following receipt of £1,773,706 from the liquidator in the first quarter”.
“Work is continuing to recover further funds from the defaulted loan holder,” it added.
In a statement following questions from the JEP, the Treasury Department said: “We welcome the recovery of £1.7 million as part of the liquidation process.
“We want to reassure Islanders that we are continuing to work closely with the liquidators and pursuing every reasonable avenue to recover as much public money as possible.”
