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Old 19th Mar 2004, 20:24
  #251 (permalink)  
jmc-man
 
Join Date: Jan 2003
Location: Manchester
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A sad day...

As I understand the legal position, EAAC are in the process of seeking a voluntary agreement with their creditors. As a mean of demonstrating their intentions to restructure, they have laid off a significant number of staff, without following the law with regard to redundancy.

Until such time as ALL creditors (INCLUDING STAFF) agree, they are still a trading company, with all the liabilities that ensue. Any creditor, including a staff member, is legally entitled to seek a winding up order to force the situation.

I fear the staff will be stuck in Limbo until such time as :-

(1) EAAC feel they have enough money to pay their creditors, by means of some arrangement ( in the staff case, an agreed amount in lieu of salary/notice etc) or

(2) One of the creditors (including the staff) feel they would be better off issuing a winding up order, on the basis that the liquidation of the comnpany ( including the repayment of any or all loans by the company to Minardi) would provide them with a better payout than the voluntary agreement.

I'm not sure how anyone could get access to the Loan Details mentioned earlier, but it strikes me that there is a lot of " stuff" going on in the background and a measured decidion by the creditors will be difficult without a lot more details.

This could drag out for a while, and that is the last thing the restructured EAAC need, as business confidence is required if they are even to keep the Bath Travel work.

It's going to be a bit of a slog guys and girls......best of luck
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