Flybe rescue complicated by mortgaging of assets
Flybe mortgaged off the majority of its remaining assets to its shareholders last year, potentially complicating the UK govt’s efforts to provide a loan on commercial terms to the struggling airline. Connect Airways — a consortium of Virgin Atlantic, Stobart Air and hedge fund Cyrus Capital — formally took over the regional airline last year, with the members of the consortium also providing loans to Flybe. UK corporate filings show that Flybe received a loan from the 3 shareholders in Feb 2019 that required the airline to pledge assets such as buildings, equipment and intellectual property as collateral. A person familiar with the matter said that the loan agreement covered the majority of Flybe’s assets that it had not already offered as security to previous loans. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-01-28/unaligned/flybe-rescue-complicated-by-mortgaging-of-assets
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Flybe rescue complicated by mortgaging of assets
Flybe mortgaged off the majority of its remaining assets to its shareholders last year, potentially complicating the UK govt’s efforts to provide a loan on commercial terms to the struggling airline. Connect Airways — a consortium of Virgin Atlantic, Stobart Air and hedge fund Cyrus Capital — formally took over the regional airline last year, with the members of the consortium also providing loans to Flybe. UK corporate filings show that Flybe received a loan from the 3 shareholders in Feb 2019 that required the airline to pledge assets such as buildings, equipment and intellectual property as collateral. A person familiar with the matter said that the loan agreement covered the majority of Flybe’s assets that it had not already offered as security to previous loans. <br/>
