Greybull promises to hand back cash if it makes a profit from Monarch collapse

Oliver Gill
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Greybull Capital bought Monarch Airlines for £1 from the Swiss Mantegazza family in 2014 (Source: Getty)

Greybull Capital, the former owner of bust airline Monarch, has promised to hand cash back to the government if it transpires it made a profit from the carrier’s failure.

With 80,000 customers stranded when Monarch plunged into administration, UK authorities sprung to the rescue. The biggest peacetime repatriation cost taxpayers £60m, as planes were hired to fly Monarch passengers home.

Sky News reported this lunchtime it had obtained a letter from a Whitehall source written by Greybull partner Marc Meyohas to the chair of the Transport Select Committee.

Greybull confirmed the letter's existence adding that it "wholeheartedly" concurred with transport secretary Chris Grayling's recent statement that "any stakeholder who finds themselves in-pocket at the end of the administration process would be under a moral obligation to contribute to other stakeholders".

Read more: Grayling: Greybull should foot bill for £60m Monarch repatriation

A spokesperson said:

This would include helping to defray the costs incurred by the Department for Transport in repatriating Monarch customers. This was first discussed in principle with the secretary of state and his department several weeks ago.

While Greybull, as a major creditor of Monarch, may be in line for a payout from administrators KPMG, it is unclear whether it will a profit given the complex nature of the airline's funding structure.

"We also agree with the secretary of state that it is premature to prejudge the outcome of the administration," the Greybull spokesperson said.

Read more: Ailing Interserve calls in consultant architects of failed Monarch strategy

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