Lufthansa in BMI threat
SIR MICHAEL Bishop, chairman and controlling shareholder of BMI, has been told to inject more capital into the group or risk scuppering its buyout by German airline Lufthansa.
Lufthansa has insisted the conditions of its buyout of BMI from Bishop have not been met and is demanding Bishop stabilise its finances first, or it may walk away.
This threat comes after Bishop last week insisted the conditions have been met.
The pair, who are the airline’s biggest shareholders, originally agreed the deal’s terms a decade ago.
Under the terms, Bishop can exercise an option that forces Lufthansa to take over his remaining holdings in the beleagured airline.
BMI made record losses of £100m last year, amid a dearth of consumer spending as the credit crunch has worsened. It is the second largest airline operating at Heathrow.