Thousands of passengers could be left stranded across Europe by the collapse of Flybe Group (FLYB) as the airline teeters on the brink. Customers in 170 foreign cities across Europe face being left to fend for themselves, forced to find their own way home and recoup costs from credit card companies. Flybe is thought to be just days away from running out of cash after it was hit by poor winter trading and credit card firms refused to hand over fare payments due to fears about the firm’s financial health. With the majority of Flybe passengers not covered by travel industry lifeboat Atol, ministers were last night under growing pressure to step in. The firm – Europe’s biggest regional airline with more than 8 million passengers a year – is locked in last-ditch rescue talks with the Government to repair a multi-million pound hole in its finances.
Aston Martin Holdings (AML) needs a £500m cash injection within weeks to stabilise the embattled luxury car maker. The prediction was made by analysts at Redburn and follows talks the company is understood to have held with several foreign potential investors. Falling sales and profits combined with the expense of launching the DBX, the company’s first SUV, have put intense pressure on Aston’s finances, with its almost £900m debt pile leading some to think the business is close to breaching its banking covenants. According to reports, Chinese electric car battery maker CATL is the latest in a series of groups to have held discussions with Aston about an investment to prop up its finances. Fellow Chinese automotive group Geely – which owns Lotus, black cab maker LEVC, Volvo and Lynk & Co – is also said to be interested.
AstraZeneca (AZN) is braced for a $100m (£77m) hit after it was forced to axe a fish oil tablet which was found to be ineffective at treating a condition linked to heart disease. The drugs firm said it will halt trials, which were at their most advanced and expensive stage, on the drug. Called Epanova, it was valued at $533m in previous accounts. The drug was intended to treat patients with a condition called mixed dyslipidaemia which causes abnormal levels of cholesterol and fatty substances in the blood known as triglycerides and can lead to heart disease.
Former Africa minister Mark Simmonds faces embarrassment after a company he joined last week warned it may have been scammed over a non-existent $184m (£157m) loan. Mr Simmonds has launched an urgent investigation into the deal, in which oil explorer Lekoil Ltd (DI) (LEK) appears to have been tricked into thinking it had secured cash from the Qatar Investment Authority (QIA) for a project in offshore Nigeria. Lekoil hired the ex-Foreign Office minister as a non-executive director last week and suspended its shares on Monday. The Aim-listed explorer said it appeared to have struck a deal not with the QIA but with individuals masquerading as its representatives. It said: “The company will be contacting the relevant authorities across a number of jurisdictions without delay, with regard to what appears to be an attempt to defraud Lekoil.”.
