Crunch time for Globespan

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The Independent Online

Globespan, Scotland's biggest airline, faces a "crunch-time" funding deadline tomorrow, which is likely to decide the fate of the company.

It's believed that Globespan, which was spared administration at the 11th hour last month, is still awaiting payments from Halcyon Investments, a Jersey-based special purpose vehicle.

It is understood the payment is linked to funds owed to the airline by E-Clear, a credit-card processing firm. Failure to receive the cash could force the airline into administration this week. A big-four accountant is on standby, and it is believed that the Civil Aviation Authority is once again being kept abreast of the firm's situation.

A source said: "This is not of Globespan's own making but the situation is once again very serious. We are getting to crunch time."

Globespan Group, which was founded in 1970, has around 900 staff and operates a fleet of more than 10 planes, primarily from Scottish airports to destinations such as Alicante and Orlando.

Globespan today confirmed that it is on the verge of successfully concluding a major investment from Halcyon Investments Ltd.

A spokesperson said Halcyon has negotiated an investment package with the Edinburgh – based company that includes up front and future injection into the group to enable it to expand its airline and associated products and services.