Greybull pledges to hand over profits to government

Greybull pledges to hand over profits to government

The former owner of Monarch Airlines has pledged to hand over any profits it makes from the sale of assets to the government.

In a letter to the Transport Committee, Greybull Capital said it has a “moral obligation” to repay the taxpayer.

The government spent £60m getting passengers home after the airline collapsed.

However, it is unclear if any profit will be made.

Monarch’s administrators, KPMG, are seeking clarification in court about whether they have the right to sell the take-off and landing rights.

Greybull, run by brothers Marc and Nathaniel Meyohas and Richard Perlhagen, are the main creditor and has first call on any cash from asset sales.

In a statement published on the BBC, Greybull said: “We concur wholeheartedly with the secretary of state’s recent statement that any stakeholder who finds themselves in-pocket at the end of the administration process would be under a moral obligation to contribute to other stakeholders.

“This would include helping to defray the costs incurred by the Department for Transport in repatriating Monarch customers.

“This was first discussed in principle with the secretary of state and his department several weeks ago. We also agree with the secretary of state that it is premature to prejudge the outcome of the administration.”

Greybull’s letter to the committee highlighted the firm’s commitment to “profit sharing with stakeholders”.

About 110,000 passengers were on holiday and booked to fly home when Monarch ceased trading at the start of October, while more than 200,000 people lost their jobs.

The airport slots are reportedly worth about £60m.

In its letter to MPs, Greybull said: “We have acted responsibly and been a highly supportive shareholder of Monarch since 2014.

“We remain deeply sorry and saddened that circumstances beyond its control led to the failure of Monarch despite the best efforts of so many to turn around the company and the significant capital provided by Greybull to rescue Monarch from bankruptcy since 2014.”

Pilots’ union Balpa has called on Greybull to use any profits from asset sales to go to former employees of the airline.

General secretary, Brian Strutton, said: “Loyal Monarch staff woke up on October 2 to find that overnight their company had been placed into receivership and they were redundant.

“They have since learnt that thousands of pounds backpay owed to them won’t be paid until other debts have been met, if at all.

“So, before Greybull hands over anything to the Government they should first do the right thing by their ex-employees who they left high and dry. I’m sure the government would agree.”

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