The sale of Flybe to a Virgin Atlantic-led consortium is expected to be finalised in a month’s time.
The projected completion date of February 22 was unveiled today in an overview of the offer to the regional airline’s shareholders today.
The Connect Airways consortium, involving Virgin Atlantic, Southend airport owner Stobart Group and hedge fund Cyrus Capital Partners, has now provided the first £10 million of a £20 million credit facility to keep the airline flying.
Flybe, which put itself up for sale in November following a profit warning, agreed to sell all its operating businesses, Flybe Limited and Flybe.com, to Connect Airways for £2.8 million subject to a limited number of conditions.
The airline said today: “Flybe is progressing with these conditions and further announcements as to progress in this regard will be made in due course.
“The SPA [share purchase agreement] was also dependent upon Flybe Group moving to a standard listing, which was completed on 17 January 2019.
“Connect Airways has now provided the first £10 million of the £20 million secured committed credit facility, as referred to in the announcement of 15 January 2019.
“Flybe continues to receive payments from its card acquirers in accordance with the arrangements agreed at the time of the SPA being entered into.”
It added: “The arrangements with the company’s credit card acquirers and banks are important to enable Flybe to continue to trade and are conditional themselves upon the SPA completing.
“The sale to Connect Airways of Flybe’s trading subsidiaries is expected to complete by the longstop date of 22 February 2019.”
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