Monarch Aircraft Engineering (MAEL) has clarified its relationship with Petrol Jersey Limited, a Channel Island-based entity that apparently acquired the MRO provider for just £1 ($1.27).

In addition, the Luton Airport-headquartered operation has agreed a company voluntary arrangement (CVA) with its creditors in order to restructure debt repayments.

KPMG, which is handling the insolvency of former sister business Monarch Airlines, indicated in its most recent update into the administration that Petrol Jersey had purchased MAEL from another entity within the group, Monarch 2011.

However, due to company law on the Channel Island, little detail is available on Petrol Jersey: its most recent annual return, filed in February this year, indicates that the firm's shareholders are other trusts or holding companies registered in the British Virgin Islands, Gibraltar, Jersey and Luxembourg.

Only two individuals are listed on the return – Douglas Silverman and Jay Bharadwa – both of whom have links with New York hedge fund Senator Investment Group.

MAEL describes Petrol Jersey as "one of the investment vehicles of Greybull Capital".

Greybull Capital was the former owner of Monarch Airlines and has, since late October, been the "substantial majority shareholder in MAEL", says the UK maintenance firm.

In addition, Greybull Capital made a "substantial capital injection into MAEL", when it became majority owner, says the maintenance firm.

MAEL declines to comment on the identity of any other shareholders.

As part of the recapitalisation process, Petrol Jersey now has a secured charge over MAEL's property portfolio.

"The loan is part of the financial arrangements that were made when the new ownership and capital injection were finalised in late October, and mirror financial arrangements that MAEL had in place previously," its states.

Petrol Jersey is the senior secured creditor in the Monarch Airlines administration; it has so far received a total of £60 million realised by the insolvency process, including £5 million from Monarch Holidays.

In its progress report, KPMG says that MAEL has proposed a CVA to its creditors. MAEL says that has now "been approved" and "enables the business to move forward with confidence, and to fully realise its potential as a leading, independent aircraft maintenance provider with a strong customer base and a skilled, dedicated workforce."