Zeroflap - The Isle of Man, like the Channel Islands, falls outside a lot of the UK rules - for example they are not part of the EU and have different tax rules.
Manx Airlines is therefore not an EU airline, and is not granted the same privileges (such as being able to operate anywhere within the EU) that are given to EU carriers - which was why they set up Manx Airlines Europe which subsequently became British Regional Airlines.
I'd assume that if they are grounded, then so must be Aurigny?