Reynolds to rescue GPA restructuring with pounds 15m: Government steps in to assist dollars 5.5BN debt refinancing
Monday 22 March 1993
The move is calculated to ensure the success of GPA's attempt to restructure its dollars 5.5bn (pounds 3.7bn) debt mountain.
The company's bankers have demanded an injection of fresh equity, by way of a dollars 200m convertible preference issue, from investors before they agree to the refinancing package.
But Aer Lingus, the state-owned airline that has an 8 per cent stake in GPA, is not able to take up its rights because of its own precarious debt position.
An Irish government spokesman confirmed yesterday that the cabinet had agreed in principle to transfer Aer Lingus's rights to new equity in GPA to the Shannon Free Airport Development Company (Sfadco).
But it is understood that the company has still to reach agreement with Sfadco over the terms of the deal.
Aer Lingus is itself seeking funds from the Irish government, as part of a rescue plan proposed by Bernie Cahill, its new chairman.
It is understood that the airline also wishes to dispose of its stake in GPA, as the proposals involve it divesting all non-core activities and holdings. But there are no plans currently to transfer the stake to Sfadco.
The Irish prime minister, Albert Reynolds, said at the weekend that the government would be investing in GPA on the same basis as other shareholders, and that it expected a return 'in time'.
GPA is based in the Shannon Development area, and although the company directly employs only 300, the government is keen to ensure its future because of its status as a prestigious global company headquartered in the region.
The company, the largest aircraft leasing concern in the world, is attempting to restructure dollars 5.5bn worth of debt. Its problems stem from the failure of a planned flotation on international stock markets last summer, and from recession in the airline industry.
A GPA spokesman declined to comment on reports that the Irish government would invest. 'The negotiations with the banks, shareholders and aircraft manufacturers are at a sensitive and confidential stage,' he said.
But it is understood that the company has had discussions with several Irish government departments and state agencies during the restructuring talks.
- 1 Green village to be bulldozed and mined for lignite in Germany's quest for non-nuclear fuel
- 4 Teenagers irritable because early school hours mess with their biological clocks
- 5 Now we know whose fault it is if you end up being murdered in Thailand
Isis could become 'world’s first truly terrorist state' and bomb UK with nuclear and chemical weapons, Theresa May warns
Car tax disc changes: Five facts you never knew about your (almost obsolete) tax disc
Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
Isis an hour away from Baghdad - with no sign of Iraq army being able to make a successful counter-attack
The Aral Sea: Nasa pictures show how what was once the fourth largest lake in the world has become almost completely dry
Isis, we are told, is a 'clear and dangerous threat to our way of life'. I’m sorry, but I just don’t buy it
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Should gay sex be illegal? 16% of Britons think so
Mark Reckless becomes second Tory MP to defect to Ukip in a month
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...