Administrators to consider charges levied on Tayside Aviation before collapse

Floating charges were put over the Tayside Aviation assets by owner Tony Banks and a company he controls in the days leading up to its administration.

By Gavin Harper

April 28 2023, 5:55am

Tayside Aviation's premises at Dundee Airport. Image: Kris Miller/DC Thomson.

Administrators will consider charges placed on Tayside Aviation in the weeks before the Dundee flight school’s collapse, The Courier understands.

Companies House documents show floating charges were granted in favour of owner Tony Banks personally and a company he controls shortly before the administrator’s appointment.

Another floating charge was set up between Tayside Aviation and RBS on April 6 2022.

A floating charge is a security held over assets, normally made to lenders issuing funds to a business.

Both of the recent charges were delivered in April, prior to Tayside Aviation entering administration on April 20 with immediate loss of 22 jobs.

Upon their appointment, the administrators said the business had “ongoing working capital requirements that are unable to be funded”.

Tayside Aviation students ‘unsecured creditors’

Administrators confirmed this week that students are unsecured creditors, meaning they will rank low in priority for repayment.

Mr Banks and his firm will be secured creditors if they are creditors of the company.

It is not clear whether either Mr Banks or his company advanced funds in exchange of the grant of the floating charge.

Concerned parents of students affected by the collapse of the Dundee firm – many of whom have lost thousands of pounds – have called for transparency.

Students from Tayside Aviation which has gone into administration. Image: Kenny Smith/DC Thomson

The most recent charge was registered on April 18 – just two days before administrators were appointed.

It is by Tayside Aviation in favour of ARB (Scotland) Investments Limited, another firm run by Mr Banks.

Another floating charge was registered on April 6 – by Tayside Aviation in favour of Mr Banks personally.

A spokesperson for Mr Banks has been approached for comment.

Companies House documents

Mr Banks, the founder of Balhousie Care, was appointed as a director of Tayside Aviation on December 14 2021.

On the same date, former managing director Jim Watt and his wife Kate resigned as directors.

Tony Banks bought Tayside Aviation in December 2021. Image: Balhousie Care Group

Meanwhile, the most recent publicly available accounts for Tayside Aviation for the year to December 2021, shows shareholders’ funds of £360,480.

That is only a slight change from the previous year’s figure of £392,390.

Two universities that run flight degrees in partnership with Tayside Aviation said they are exploring their options to help students.

Perth flight school ACS Aviation has also taken on more than 25 students from the Dundee business. It has also recruited some of the 22 staff who lost their jobs.

The Dundee flight school also delivered the RAF air cadet pilot scheme for several decades. The air force said it is “reviewing available options”.