A business with Debt and almost zero income (might get worse if fire cover gets reduced) is in much worse position than one with large Debt but is able to service it. A good question is whether the debt is index linked with interest rates rising.
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Spot on. LRT hasn’t been able to service its massive debts, which is why the Council has had to lend LRT more money so LRT can pay the interest payments back to the council for its loans, so adding to the debts. The majority of money borrowed is meant to be paid back at 8% interest while one loan was taken out at 12.125%. Other loans include interest at 12% while 2 loans are at 11.5%. Most loans are fixed.
Let’s not forget that the Council auditors have resigned, which is remarkable. No audits since 2018/2019 have been signed off due to the Council failing to give accurate information regarding the financing of its airport.