The collapse of Flybe has delivered a hit of up to £70 million to entities linked with Lucien Farrell’s Cyrus Capital hedge fund.
The regional airline fell into administration for a second time in January after it struggled to reboot its operations amid delays in aircraft deliveries.
It was rescued from its first insolvency by Cyrus Capital when a turnaround effort led by Virgin Atlantic fell apart in March 2020. Flybe was officially transferred into a new operating company in April 2021 and received an equity injection of £20 million, as well as credit lines worth an initial £25 million.
However, its owners are now owed about £50 million after increasing their support for the business and administrators will not be able to repay the
