Originally Posted by
Falcon666
As usual, the accounts are clear as mud! However it seems that the Group have raised an additional £80m from shareholders this morning which will be used to pay back the overdraft. At which point a new overdraft of £40m will be offered on more expensive terms. They had to do this as a) they had run out of enough cash to see them through the year and b) the provider of the overdraft (or Revolving Credit Facility as it is known) has a full legal charge over the airport and could in theory take control of the airport due to the "going concern" issues.
I suspect the shareholders are not happy but faced with a "pay up or lose it all" scenario they took the least painful option. I think the accounts show that even with this new cash injection there is still the possibility that the company might run out of cash prior to the next year end.
Getting the airport profitable before the cash run out was always the dilemma facing the owners. Carlisle Airport will now be sacrificed to try and keep Southend alive. Let's hope they succeed but I have to admit the future looks very gloomy.