Monarch secures £125m rescue package
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Monarch Holdings Limited has completed its sale to Greybull Capital, securing £125 million in permanent capital and liquidity facilities.
Greybull now has a 90% ownership interest in Monarch with the remaining 10% in the group’s pension scheme.
As part of the deal a £50m capital commitment has been confirmed by Greybull along with stakeholders including the Mantegazza family.
The Civil Aviation Authority (CAA) has also renewed the group’s ATOL licence.
“We are delighted to acquire Monarch and invest our capital into a very strong brand with great potential in all its markets and are grateful for the selling shareholders’ support in achieving this transaction. We see this as a long-term investment and hope we can be very supportive shareholders throughout Monarch’s next chapter,” said Greybull partner Marc Meyohas.
Fabio Mantegazza said: “We are very proud to have created one of the most loved aviation brands in the UK over the last 46 years. We think that now is an appropriate time to allow new shareholders to take Monarch into the future, with secure financial backing and clear strategic goals and we wish the group every success.”
Under new chief executive Andrew Swaffield Monarch started a strategic review in the summer which has reduced its fleet size; secured a new Boeing order and moves to stop its long-haul and charter flying by April 2015.
Instead the carrier will focus on short-haul European leisure routes from Gatwick, Manchester, Birmingham, Luton and Leeds Bradford. Its East Midlands services will stop in summer 2015.
The group has also agreed a pay cut with its staff.
“I am delighted to welcome the Greybull team as the new owners of the Monarch Group. We have a shared vision for the strategic direction and prospects for the business, and I am looking forward to working with them to implement the exciting plans for building our future,” said Swaffield. “I would personally like to thank all Monarch employees who have been hugely supportive of the initiatives which were essential to complete this transaction. I am very proud to be leading such a team – together we will be building a great future for the group.”
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