(Reuters) – Britain’s biggest domestic airline Flybe Group Plc <FLYB.L> said on Tuesday it had reached an agreement to sell its main trading company, Flybe Limited and the digital company Flybe.com, for 2.8 million pounds to Connect Airways.
In addition, Flybe said it reached a revised bridge loan of up to 20 million pounds to provide funding to Flybe Limited, of which 10 million will be available on Tuesday to support the business.
A number of improved agreements with banks have also been reached to improve liquidity, it added.
The new developments occur after the firm was not able to satisfy conditions for a 20 million pound loan to help its working capital requirements in light of a take over offer by Richard Branson’s Virgin Atlantic, and Stobart Group <STOB.L> and Cyrus Capital to buy Flybe for $2.8 million.
A joint venture company called Connect Airways – 40 percent owned by Cyrus’ unit DLP Holdings and 30 percent 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.
($1 = 0.7753 pounds)
(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Bernard Orr)