Pair combine to bring flight simulator company back from receivership

Iain Pero, the brother of Mike Pero Mortgages founder Mike, has confirmed he is the new owner of flight simulator business Flight Experience.

Pero and one of Flight Experience's founders, Russell Hubber, have joined forces to buy the business out of receivership.

However, the original shareholders, including Mike Pero, will be left out of pocket. The receivers of Flight Experience Group say there will still be a "significant shortfall" in funds after the sale.

The company was put into receivership this month by ASB Bank, which is owed $4 million.

The Christchurch start-up manufactures and sells flight simulators for pilot training and entertainment. It has nine independently owned active franchisees in New Zealand, Australia, Singapore and Hong Kong, and other simulators sold to individuals and training organisations are also supported by the company.

Hubber started the flight simulator business in his garage. It was backed by some big names.

Other shareholders include Sky TV founder Craig Heatley's investment vehicle Ocean Private Equity and The Warehouse founder Stephen Tindall's K1W1. Those on the board include former Meridian Energy chief executive Keith Turner.

Iain Pero bought the Sydney Flight Experience franchise last year.

The new company is called Pacific Simulators 2010.

Mike Pero has been highly critical of the way the company was run, saying it expanded too fast.

Pero and Hubber plan to expand into the US market within six months.