Flybe, Europe’s largest regional airline, has collapsed into administration less than two months after the government announced a rescue deal.
However, the airline’s owners Connect Airways – a consortium of Virgin Atlantic, Stobart Air and hedge fund Cyrus Capital – have pulled the plug, a little over a year after buying it.
Ah, but. So, rather famously they transferred the Heathrow landing slots – worth, apparently, £65 million – out and into Virgin. Or summat like that. Those landing slots being one of the very few things in there that had any value. They also paid only £2 million for the equity.
Sure, they apparently put more capital in but that was aided by having charges over absolutely everything else that was of any value at all.
So, there is something along the lines of fraudulent transfer. No, of course, not, I am not alleging that here. But if the administrator or receiver or whatever things that assets were transferred out, unrighteously, of the soon to be bust organisation there can be a certain “Ahem” and can we have it back please. For the creditors, you unnerstan.
So, how far back can that go? And is it, by chance, 12 months and no more?