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Flybe says it will wind up company if shareholders don't back sale

Separate agreement for airline and website

Flybe has warned shareholders it will wind up the company if they do not back a sale to a consortium led by Virgin Atlantic and Stobart Air.

The company was sold to the consortium, which also includes venture capital firm Cyrus, last month for £2.2 million. The new airline is due to operate as Connect Airways.

The low sale price means shareholders would receive just a penny a share.

A meeting to approve the sale will be held on 4 March.

However, on 15 January, to avoid the airline going into administration, the Flybe board entered into a separate agreement to sell the operating subsidiaries including the airline and the website.

That sale is expected to be competed by 22 February, and does not require shareholder approval.

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