Flybe update

The future of Flybe is still confused after a hedge fund which now holds 19% of the shares is threatening an injunction to stop the sale (see COMMENT last week).

Staff at the airline's Exeter headquarters are concerned as to what happens next but within recent days have been paid. Credit card companies are taking bookings and have reportedly relaxed their pre-deal cash restrictions on the company.

Hosking Partners, established in 2014, has also acquired Aeroflot shares, indicating an interest in the air transport area.

Jeremy Hosking is a Brexit supporter but it is not known if the former Stobart chief executive Andrew Tinkler has any involvement.

The Connect Airways consortium that is planning to take over Flybe has increased its offer for the airline and agreed a bridging loan after conditions for the first credit facility could not be met.

Connect, made up of Cyrus Capital, Virgin Atlantic and Stobart Group, agreed two weeks ago to acquire Flybe for £2.2m and make available a £20m bridge loan facility to support the airline's ongoing working capital and operational requirements.

In a statement to the market on Tuesday, Flybe said it had had no alternative but to agree to the revisions because unspecified conditions attached to the loan had not been dealt with.

www.flybe.com  www.cyruscapital.com  www.virginatlantic.com  www.stobartgroup.com  www.hoskingpartners.com

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