FlyGlobespan cash flow issue

[Humberside]

Administrators were almost called into FlyGlobespan on Friday due to a cash flow problem caused by their credit card processing company delaying payments. They have become cautious after the collapse of SkyEurope and may have financial problems themselves.

GSM managed to secure last minute funding but it is unsure if this will see them though long term. While the credit card company are partialy responsible, it shows that GSM's cashflow position isn't very good either

In some sense this reminds me of why Frontier went into Chapter 11

www.independent.co.uk/news/business/news/lastgasp-cash-keeps-airline-flying-ndash-for-now-1820805.html

[Humberside]

The Independent have followed up with another report focusing on the credit card processing company
www.independent.co.uk/news/business/news/turbulence-ahead-for-eclear-1812629.html

Meanwhile the investment FlyGlobespan have secured is long term and seems unrelated to the weekends events
www.heraldscotland.com/news/transport-environment/we-didn-t-need-cash-lifeline-says-airline-1.932675

[Humberside]

Apparently the new investors in GSM are related to E-Clear (the credit card processing company), and the deal is also facing delays in getting regulatory approval for investment

www.guardian.co.uk/business/2009/dec/13/globespan-faces-funding-crunch

[Humberside]

Being widely reported now GSM are in administration