Flybe Group Plc has said it has reached an agreement to sell its main trading company, Flybe Limited, and the digital company Flybe.com for £2.8 million to Connect Airways.
In addition, Flybe said it reached a revised bridge loan of up to £20 million to provide funding to Flybe Limited. A number of improved agreements with banks have also been reached to improve liquidity, it added.
Unable To Satisfy Conditions
The new developments occur after the firm was not able to satisfy conditions for a £20 million loan to help its working capital requirements in light of a takeover offer by Richard Branson's Virgin Atlantic, and Stobart Group and Cyrus Capital to buy Flybe for $2.8 million.
A joint venture company called Connect Airways - 40% owned by Cyrus' unit DLP Holdings and 30% each owned by Stobart Group's aviation unit and Virgin Atlantic - had won the backing of Flybe's board to buy the airline.
The consortium is aiming to rebrand the struggling British regional carrier.