Originally Posted by
SWBKCB
This approach has always baffled me - if the loan is on commercial terms, why borrow from WG, why not use a bank like the commercial business it purports to be? It's not like WG doesn't have other uses for the money
There's the rub, isn't it? If it was a commercial business, why would they be bothered? If it is an instrument of WG's industrial policy, say so.
because I suspect no commercial lender would touch them with a proverbial very long barge pole. Put it this way:-
you go to a lender and say I would like to borrow £x million for ongoing general expenses, but my outgoings are significantly higher than my incomings (I suspect in the case of CWL- in the absence of any mitigation) they are significantly higher, oh and I have these other ‘commercial’ loans (WG) I need to repay and the same lender also has a £52m interest in my other assets (WG).
oh and by the way I have no future visibility on any future income (we have had triple shocks you know - not our fault) and no real future strategy for either cost or income but we are important you know !
and I have this really fat employee costs and management structure - we are a proper airport you know.
I think I know what the answer would be......