Bid to rescue Laker fails

Press, 10 February 1982, Page 8

Bid to rescue Laker fails

NZPA London A London accountant. Bill Mackey, the receiver administering Sir Freddie Laker's bankrupt airline, hoped to sell the company's profitable tour business today.

The sale would break up the Laker empire and end the “Skytrain" cut-price service to the United States.

Six would-be rescue groups stepped forward after Laker's, collapse on Friday but the best-financed of them, led by a Canadianowned bank. Orion Royal, abandoned hope yesterday.

The bank said its SBOM rescue bid had failed because it could not reconcile the interests of all creditors.

The receivers, seeking to salvage as much as they can to pay off the company's s62lM'debts. have been concentrating their efforts on a quick sale of the tour business before the business evaporates in a stampede of

cancelled bookings. The sell-off would leave 14 heavily-mortgaged planes as the airline's main assets. The receivers hope to sell the fleet piecemeal to other airlines.

Several big travel concerns have shown interest in the Laker tour business. Mr Mackey said yesterday that the tour subsidiaries. Laker Air Holidays and Arrowsmith Travel, could be sold within 24 hours. About 2000 Laker employees were rebuffed yesterday when they marched on Parliament to see the Prime Minister (Mrs Margaret Thatcher)' and tx> seek Goverment help for Sir Freddie. pioneer of cheap Atlantic fares.

Mrs Thatcher refused to meet them and her Aviation Minister (Mr lain Sproat) repeated the Government's refusal to prop up unprofitable industries.