Excel Airways

[mary_hinge]

Exmuppet.

You say
“If you recall it were the two banks that put the price tag on the business back in Nov 06 and effectively burdened the business with excessive debt. It was also the same banks that until the 11th hour refused to take any write down on the afore mentioned debt (they effectively wanted their money again) which just was not realistic in the current climate.

These banks were indicating that they would continue to support XL as a going concern until the 11th hour when both parties refused to put in any more working capital, to add insult to injury they then announced 24hrs later that they were going to write off the entire debt...IF THEY HAD DONE THIS ONLY 1 WEEK EARLIER THE BUSINESS WOULD NOT HAVE FAILED !!! it would have been refinanced and been in good shape with little or now debt and with oil and currency where it is today MADE A DECENT PROFIT IN FY 2009...”

Now I could be wrong, but surely at the Management Buyout, the team new how much they needed to borrow. The banks would not assist without a guarantee. This was provided by Eimskip. http://www.icelandreview.com/icelandreview/daily_news/?cat_id=21123&ew_0_a_id=311913

The loan was principally from Barclays and was due for repayment / rescheduling in May this year. Barclays pulled the plug early September, 4 months later than they could have done, as it become clear that things were going to get rough. A stock exchange message was posted in Iceland to the effect. Eimskip put provisions in place to absorb this loan.
http://www.lloydslist.com/ll/news/eimskip-investors-may-acquire-e207m-loan/20017569463.htm

Having been through the busiest period of the year, just prior to the Winter wind down and with aircraft heavy maintenance due, to ask for more working capital was a good indication that the Winter would be the end.

PW had an good airline and product, the results of 1700 hard working individuals (like your self) now without work and who my heart goes out to. But I do feel that some questions should be raised regarding certain business practices by PW and also certain Icelandic investment houses.

Don’t forget that Eimskip is a daughter company of Avion, Now who did Avion own…..