Statement from FRP Advisory, the company that managed WAC's pre-pack administration:
Worldwide Aviation Holdings Limited, previously the parent company of both Worldwide Aviation Limited and Wycombe Air Centre, is a sub-group of the Cabair group of companies.
It suffered severe cashflow problems after intercompany debts were not recoverable due to the failure of two group companies – Cabair International Aviation Limited and European Pilot Training Limited (EPTA) earlier this month.
Commenting on the transactions, Jason Baker said: "World Aviation Holdings Limited suffered as a result of an inability to collect on intercompany debts, which in turn adversely affected sub-group businesses. This had a dramatic impact on cashflow and left both World Aviation Holdings and Wycombe Air Centre in a position where neither business was able to continue to trade as a going concern.
"To preserve each company's value through goodwill, we determined the best course of action would be to proactively market the businesses prior to going through a managed administration process. This process allowed us to protect the companies while a buyer was sought, safeguarding jobs and providing creditors with the best possible chance of a return."