Originally Posted by
Barling Magna
Stobart Group were caught between the proverbial rock and a hard place. If they are successful in buying back the companies they will have to add the circa £100m liabilities to their balance sheet. Then they will have the ongoing cost of maintaining the aircraft in a world where no-one is flying. But this is seemingly better than crystalizing the liabilities now as they are cash poor with no aeronautical revenues.
If the buy back happens they will have pushed the problem further down the line but it certainly hasn't gone away. At the time I thought the disposal of the aircraft and their leases to Connect was a genius move. I'm sure Stobart could not have envisaged then that they would end up having to pay money to reacquire the problem!