Flybe’s Board has urged shareholders to reject a last-minute bid from an investor group led by Bateleur Capital and Arizona-base Mesa Air Group.
It says conditions in the new bid mean it can’t be done in the timeframe required to allow Flybe to continue to trade.
It says Flybe has now drawn down the first £15 million of the £20 million in loans from the original bidder, Connect Airways, a consortium of Virgin Atlantic, Stobart and Cyrus Capital Partners.
"The sums utilised under the credit facility from the Connect Airways shareholders are repayable not later than 22 February 2019," Flybe’s Board said in a statement today.
"The arrangements with the company’s credit card acquirers and banks are vital to enable Flybe to continue to trade and are conditional themselves upon the SPA completing.
"Accordingly, the Board emphasises to shareholders that it continues to regard the arrangements entered into with Connect Airways as being the only viable option available to the company which provides the security that the business needs to continue to trade successfully.
"The arrangements with Connect Airways preserve the interests of Flybe’s stakeholders, customers, employees, partners and pension members."
Loss-making Flybe put itself up for sale in November.
