Since the much talked about email has been deleted, I can confirm it's contents in brief-
(apologies, as original is in PDF and it's too long to retype!!!)
- Efforts to get offers for the company as a whole were unsuccessful
- The existing investors/management (from the buyout last year) do want to honour all contracts for students and continue the business, the bank disagree. The students are referred to a 'pre paid liability'. The investors/management are still determined to make it work somehow, and clearly want to do the right thing by the students, and they are willing to add funds to keep things going.
- But students will be asked to pay UP TO £15k, depending on stage of training, this is to supplement the investor/management funds. Again, that figure is an UP TO figure. It will depend on hours flown and original price paid. Max is 15k.
- It is a situation of top up fee's, or face administration.
- It must still be presented (and accepted) with the bank and the CAA, and no money will change hands without agreement from those parties.
- The 'top up fee' will come with other benefits to graduates and training guarantee's, there is no mention of how the money would be paid or held or guaranteed.
- They plan to assist more with airline placement, and other discounts for the students while they are on the course, by utilizing their collective power for discounts with local companies at Cranfield.
Further to that official announcement, unofficial word has come out that:
- A response from the bank is expected by monday, if approved, it will mean a new company, taking on the liability of the old students, and requiring transfer of approvals from the CAA. All of which is already in motion.
So that's the gist of it.
My view and input: The current investors/management really do want to do the right thing for the students, and don't want to see people loosing money, but there are few options left at this point.
I agree with previous posters who ask "who would pay to come to this school now?"
So, in a few months time when the new students starting the course income dries up, how will the company go forward?
Maybe a large discount on the course if you pay up front!!!!
Students I know have already started talking to other schools to finish their training, and special quotes are being made for them from other FTO's. Some are willing to pay the top up, if guarantees are made, some are refusing, some can't afford it.
How they will manage some students paying and some not, could be very interesting.