StockMarketWire.com - Flybe Group said Monday former Stobart chief executive Andrew Tinkler had made a capital injection offer for the airline.

Flybe confirmed it had received a 'very preliminary, short and highly conditional outline contingency proposal,' from Tinkler.

The proposal would replace the funding provided by Connect Airways, the Virgin Atlantic-led group, which offered to provide a £20m cash injection to keep the carrier in operation last month.

The capital injunction would only be provided if the company scrapped its proposed sale to a Virgin-Atlantic-led consortium.

But Flybe emphasized to shareholders that the proposed sale remained the 'only viable option,' as it provided the security that the business needed to continue to trade successfully.

'The arrangements with Connect Airways preserve the interests of Flybe's stakeholders, customers, employees, partners and pension members,' Flybe said.

The airline also confirmed Connect Airways had provided the first £15m of the £20m credit facility it announced in January.

In a separate statement, the company confirmed it had received a request from major shareholder Hosking partners to convene a general meeting calling for the ouster of its chairman after the regional carrier agreed to a takeover bid.

Hosking had been instructed to procure a valid request to convene a meeting under section 303 be submitted after Flybe deemed the initial request submitted last week as invalid.

A general meeting of shareholders to consider the resolutions to appoint Mr Eric Kohn and remove Mr Simon Laffin as directors of the company would be called within 21 days from 1 February 2019, Flybe said.

The meeting would be held on a date not more than 28 days after the date of the notice convening the meeting.

The company also received a further resolution from Hosking seeking the directors of the company to appoint Mr Kohn to conduct an investigation into the sales process from 14 November 2018 to 15 January 2019, Flybe said.

But Flybe reminded nominees of Hosking that 'this resolution would, if proposed, be ineffective as the company's Articles of Association do not confer on members the necessary powers.'

'The board is writing today to Mr Kohn to invite him to meet with the Nomination Committee of the Board in accordance with its procedures applicable to the assessment of Board candidates.'

'Following this meeting, in the circular to shareholders accompanying the notice of general meeting, the Board will make recommendations to shareholders in relation to the resolutions.' At 8:02am: [LON:FLYB] FlyBe share price was +0.9p at 4.1p



Story provided by StockMarketWire.com