The owner of a historic Dundee flight school which collapsed into administration with multi-million pound debts is taking legal action against the former owners.
Administrators were appointed for Tayside Aviation in April.
At the time, they cited “ongoing working capital requirements that are unable to be funded” for the demise of the firm. A total of 22 staff lost their jobs.
Tayside Aviation is owned by ARB Aviation, a company set up by millionaire businessman Tony Banks for the acquisition in December 2021.
Mr Banks, who also founded Perth’s Balhousie Care Group, acquired the flight school from husband-and-wife Jim and Kate Watt in December 2021.
He claims to have invested £3 million in the business.
Claims against former owners
Now, ARB Aviation has issued legal claims against Mr and Mrs Watt over concerns about the maintenance of aircraft and the company’s finances.
Administrators said previously that the cash generation for the business has been impacted by the number of pre-paid flying courses sold before Mr Banks’ acquisition.
A report published by the administrators, Geoff Jacobs and Blair Nimmo at Interpath Advisory, placed the company’s total debts at about £2.5 million.
Those debts include £103,423 in unused gift vouchers.
ARB alleges the business was “significantly misrepresented” at the time it was sold to Mr Banks.
It is also highlighting the impact this allegedly had on stakeholders, including the 22 staff who lost jobs.
The Courier put the ARB development to Mr and Mrs Watt, but the couple declined to comment.
Separately, administrators are investigating financial moves made by Mr Banks in the run-up to the firm’s collapse.
They have sought legal advice “on the validity of charges” in favour of Mr Banks and a company he owns, placed against Tayside Aviation in the run-up to its collapse.
Tony Banks’ plans ‘thwarted at every turn’
A spokesman for ARB Aviation said: “Taking court action is the last thing we want to do but aircraft safety and maintenance is a serious issue and so is the accounting of money.
“The purchase of Tayside Aviation has been an incredibly frustrating process.
“All the plans to invest in the business and to grow it have been thwarted at every turn as we have uncovered issues with the maintenance of the planes and the way the money given by students was accounted for.
“We’re investigating all avenues to recover funds and would advise that others suffering a financial loss should also seek legal advice.”
Investigations ongoing into Tayside Aviation
Meanwhile, The Courier understands the Civil Aviation Authority (CAA) is investigating Tayside Aviation.
The CAA oversees and regulates all aspects of civil aviation in the United Kingdom.
It has the power to both prosecute companies and charge individuals for breaches of legislation.
It is understood the probe relates to aircraft maintenance records.
A spokesman for the CAA said it was unable to comment on an ongoing investigation.
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