Flybe Struggling (as ever)

[Alistair20000]

Indeed, They were a dam good sponsor for us back then. I always worry when, As in the BBC report the words "Hedge Fund" are mentioned.

Hedge Funds have the funds to invest DB and when the business fails to perform they get out.

Sadly a lot more companies will be going to the wall this year.

 

[DB9]

Hedge Funds have the funds to invest DB and when the business fails to perform they get out.

Sadly a lot more companies will be going to the wall this year.

I just see them as more "Asset Strippers" Al.

 

[Alistair20000]

I just see them as more "Asset Strippers Al".

I don’t think there were assets to strip at the old Flybe but your point is valid for lots of business purchases.

If you ever see a “leveraged” deal, asset stripping is often what is planned.

 

[Colesman Ballz]

I don’t think there were assets to strip at the old Flybe but your point is valid for lots of business purchases.

Au contraire, Branson could hardly wait to transfer Flybe's covetted Heathrow Landing Slots over to Virgin, although of course the promised millions of credit to cover the cash flows evaporated into thin air very rapidly thereafter !

 

[DB9]

I don’t think there were assets to strip at the old Flybe but your point is valid for lots of business purchases.

If you ever see a “leveraged” deal, asset stripping is often what is planned.

I'm not sure but wouldn't their Landing Slots be considered an asset? A lot of Airlines rent planes i know that but I'd thought those slots would be of some value.

*CB beat me to it.

 

[Alistair20000]

Au contraire, Branson could hardly wait to transfer Flybe's covetted Heathrow Landing Slots over to Virgin, although of course the promised millions of credit to cover the cash flows evaporated into thin air very rapidly thereafter !

Never did like Branson.

We should not overlook that the old Flybe's business model was doomed to failure.

I think you will find the landing slots were sold by the Administrators and not the new owners. The sale is in their costs schedule.

The real disgrace is the £12 million charged by the Administrators with some hourly charges over £1,000 per hour. Disgusting.

 

[Phil Sayers]

The real disgrace is the £12 million charged by the Administrators with some hourly charges over £1,000 per hour. Disgusting.

Yep and unlike anyone else in an administration / liquidation scenario (barring those with fixed charges over assets) they are guaranteed to be paid those sums thus significantly diminishing the pot available to the creditors (sometimes small suppliers who will themselves go bust as a result of the unpaid debts).

 

[Alistair20000]

Yep and unlike anyone else in an administration / liquidation scenario (barring those with fixed charges over assets) they are guaranteed to be paid those sums thus significantly diminishing the pot available to the creditors (sometimes small suppliers who will themselves go bust as a result of the unpaid debts).

Could not agree more.

This Suit licensed robbery really does p*ss me off.

When I read that E&Y sent teams of employees to 26 airports "to inform customers, employees and stakeholders" of the position at £400 plus per hour I really wanted to punch someone.

Money short so pay expensive Suits to diminish the pot further. A real scandal that is allowed to go on.

 

[Colesman Ballz]

Could not agree more.

This Suit licensed robbery really does p*ss me off.

When I read that E&Y sent teams of employees to 26 airports "to inform customers, employees and stakeholders" of the position at £400 plus per hour I really wanted to punch someone.

Money short so pay expensive Suits to diminish the pot further. A real scandal that is allowed to go on.

A very good friend of mine was an accountant in the maintenance section of Flybe. He was called back in by the administrators for a couple of months or so, in order to sort out the books. I must enquire what hourly rate that he received. I doubt that it even got close to £40 an hour, never mind £400 !

 

[Phil Sayers]

Could not agree more.

This Suit licensed robbery really does p*ss me off.

When I read that E&Y sent teams of employees to 26 airports "to inform customers, employees and stakeholders" of the position at £400 plus per hour I really wanted to punch someone.

Money short so pay expensive Suits to diminish the pot further. A real scandal that is allowed to go on.

Another disgrace around Insolvency Practitioners (although I think this is more the case with smaller ones than the big boys) is that all too often they seem to think their job is to act in the best interests of the former owners / directors rather than in the best interests of the creditors. I have in the past informed an IP that I intended to report him to the Court for a blatant breach of his duties in that he ignored obvious preferential payments having been made (the sole shareholder and director took what little money was left in a company out so as to pay what he perceived was the company's debt to him) but the IP did not give a shit whatsoever. Started off by pretending to investigate despite doing nothing in reality and then moved on to just ignoring my correspondence.