Exeter-based airline, Flybe, has been granted court approval for a capital reduction enabling the airline to proceed with the grant of share awards to its employees giving them an equity stake in the business.
Ashfords represented Flybe on its capital reduction, the completion of which allows arrangements to be made for the acquisition of sufficient shares by its employee benefit trusts to satisfy the proposed share awards to its employees.
Flybe secured court approval for the cancellation of its capital redemption reserve in the sum of £22.5m following the agreement of shareholders at its AGM in July 2016. The reserve arising on the cancellation gives the Board the flexibility to proceed with the share grant of 5% of basic salary to all employees employed as at 31 July 2016, giving Flybe's employees a stake in the company.
Corporate Partner at Ashfords LLP, Stuart Fleet, led the matter, assisted by Solicitor, Katie Yorke.
Stuart Fleet commented: “We are delighted to have assisted Flybe in implementing its plans which will greatly benefit the airline's valued employees and provide the company with a more efficient capital structure.”
Catherine Ledger, General Counsel at Flybe said: “Ashfords LLP provided us with excellent support and advice throughout our programme of work to implement our capital reduction proposal. Their approach was proactive and knowledgeable which made the process run smoothly.“