A U.S. regulator has ordered insurance companies owned by a major Flair Airlines investor and lender to stop accepting money from new clients, citing the insurers’ poor financial conditions.
, Edmonton-based Flair said 777 Partners was no longer its largest foreign investor and that a company related to 777 had acquired its sharesFlair has declined to name the new investor, but a person familiar with the matter said it is Advantage Capital Partners, which took over the 777 investments. The Globe and Mail is not identifying the person because they were not authorized to speak publicly about the matter.
“The companies have been and are in a hazardous financial condition,” the regulator’s order says. “With negative capital and surplus in the hundreds of millions of dollars, the companies’ admitted assets are less than their liabilities.” It issued the emergency order to cease new business while conducting regular examinations of the companies, which continue. The companies disagreed with the auditor’s finding, the order says.