Originally Posted by
jez d
Statement from FRP Advisory, the company that managed WAC's pre-pack administration:
Thanks Jez. In fact the full press release (
FRP Advisory secures the sale of Worldwide Aviation Limited & Wycombe Air Centre - FRP Advisory) shows how the whole process started a little earlier and provides a bit more information:
"21 December 2011
FRP Advisory, the specialist restructuring, recovery and insolvency firm, has secured the sale of two companies owned by the same parent group, as a part of a managed administration process, safeguarding the jobs of 55 staff.
Wycombe Air Centre has been sold to Booker Airfield Operations Limited as a part of a pre-packaged administration process, following the appointment of Jason Baker and Geoff Rowley, partners at FRP Advisory, on 12 December - saving the jobs of 35 staff.
Jason Baker and Geoff Rowley were also appointed Joint Administrators to World Aviation Holdings Limited, which entered into administration on 20 December. As a part of a managed administration process, the Joint Administrators secured the sale of shares in Bournemouth based Worldwide Aviation Limited, which was 90 per cent owned by World Aviation Holdings Limited, to D.S. Aviation Limited. The transaction safeguards the jobs of 20 staff.
Worldwide Aviation Holdings Limited, previously the parent company of both Worldwide Aviation Limited and Wycombe Air Centre, is a sub-group of the Cabair group of companies.
It suffered severe cashflow problems after intercompany debts were not recoverable due to the failure of two group companies – Cabair International Aviation Limited and European Pilot Training Limited (EPTA) earlier this month.
Commenting on the transactions, Jason Baker said: "World Aviation Holdings Limited suffered as a result of an inability to collect on intercompany debts, which in turn adversely affected sub-group businesses. This had a dramatic impact on cashflow and left both World Aviation Holdings and Wycombe Air Centre in a position where neither business was able to continue to trade as a going concern.
"To preserve each company's value through goodwill, we determined the best course of action would be to proactively market the businesses prior to going through a managed administration process. This process allowed us to protect the companies while a buyer was sought, safeguarding jobs and providing creditors with the best possible chance of a return.""