DURHAM TEES VALLEY AIRPORT - 5
The BMI case was brought by Durham Tees Valley Airport Limited, part of the Peel Airports Group. Durham Tees Valley Airport Limited is owned 75% by Peel Airports Group and 25% by the Local Authorities (or it was 25% before the dilution exercise - presumably with the sale this isn't going ahead?). As stated above the Peel Airports Group is owned 65% by Vancouver Airport Services (now Vantage Airport Group) and 35% by Peel Holdings.
As the main business of Peel is property development (e.g. their behind the MediaCity development in Salford as well as many others), I would imagine their better able to deal with any compulsory purchase order type approach than your average pig farmer...
As the main business of Peel is property development (e.g. their behind the MediaCity development in Salford as well as many others), I would imagine their better able to deal with any compulsory purchase order type approach than your average pig farmer...
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Northbound A1
Please try and stop using this forum for your rants as you are making yourself look ridiculous. Your business knowledge appears around nil, and your extrapolation of facts to form your own conclusions is equally embarrassing.
On the positive side then "mmeteesside" has set out the ownership sums quite clearly.
SWBKCB
Are you sure ????
It IS Peel Airports Limited "Peel" who wish to dispose of their 75% stake, this is why there was an earlier press article as to why Peel were looking to place pressure on the remaining 25% shareholders (the 6 surrounding Local Authorities) by placing a “Dilution Notice” as to their shareholding presumably in an attempt to call their bluff. Conveniently then one presumes (I have not read any press to the contrary), the Local authority indicated that they are "unable" to contribute the required £4.3 million injection of further funds. Such an action would nullify any criticism of Peel by the Local Authorities, who when faced with a choice of "put up or shut up" can do very little to criticize Peels action in choosing to place the airfield up for sale.
The dilution notice would if not responded to then reduce the Local Authorities shareholding down from 25% to 10.8%!!
N.b. before all go shouting “Foul” the idea of a dilution notice is to ensure that all shareholders have a right to retain their interest in a company when it is deemed appropriate to make a cash call, in doing the maths, then for DTV to be required to inject £4.3M, then Peel would inject £12.9M. The clever part is of course as to where the Local Authorities would need to raise “Cash” it is potentially possible that Peel would be able to carry out “Internal reclassification” of existing assets from within the Group to support their contribution.
I am unclear as to whether this notice was effected by Peel prior to placing DTV up for sale, though IF it were, then Peel would effectively now own 89.2% of DTV !, though to be fair even 100% of nothing is nothing !!
In conclusion you may now all be way off the mark in that it may be that Peel may now own 89.2% of DTV !!
Please try and stop using this forum for your rants as you are making yourself look ridiculous. Your business knowledge appears around nil, and your extrapolation of facts to form your own conclusions is equally embarrassing.
On the positive side then "mmeteesside" has set out the ownership sums quite clearly.
SWBKCB
or it was 25% before the dilution exercise - presumably with the sale this isn't going ahead?
It IS Peel Airports Limited "Peel" who wish to dispose of their 75% stake, this is why there was an earlier press article as to why Peel were looking to place pressure on the remaining 25% shareholders (the 6 surrounding Local Authorities) by placing a “Dilution Notice” as to their shareholding presumably in an attempt to call their bluff. Conveniently then one presumes (I have not read any press to the contrary), the Local authority indicated that they are "unable" to contribute the required £4.3 million injection of further funds. Such an action would nullify any criticism of Peel by the Local Authorities, who when faced with a choice of "put up or shut up" can do very little to criticize Peels action in choosing to place the airfield up for sale.
The dilution notice would if not responded to then reduce the Local Authorities shareholding down from 25% to 10.8%!!
N.b. before all go shouting “Foul” the idea of a dilution notice is to ensure that all shareholders have a right to retain their interest in a company when it is deemed appropriate to make a cash call, in doing the maths, then for DTV to be required to inject £4.3M, then Peel would inject £12.9M. The clever part is of course as to where the Local Authorities would need to raise “Cash” it is potentially possible that Peel would be able to carry out “Internal reclassification” of existing assets from within the Group to support their contribution.
I am unclear as to whether this notice was effected by Peel prior to placing DTV up for sale, though IF it were, then Peel would effectively now own 89.2% of DTV !, though to be fair even 100% of nothing is nothing !!
In conclusion you may now all be way off the mark in that it may be that Peel may now own 89.2% of DTV !!
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This link to a report for a Darlington Council Cabinet meeting on 6th December 2011 might just clarify some, or all, of the comments made by Skyman771 above.
I'll leave you to do the maths.
http://www.darlington.gov.uk/PublicM...20Item%201.pdf
(If the link doesn't work for any reason go to the Darlington BC website and type Durham Tees Valley Airport into the search box)
I'll leave you to do the maths.
http://www.darlington.gov.uk/PublicM...20Item%201.pdf
(If the link doesn't work for any reason go to the Darlington BC website and type Durham Tees Valley Airport into the search box)
My reading of this is that the dilution hasn't yet taken place (i.e. "PAL have indicated their intention to serve a formal share conversion notice") but don't know how the announcement of the sale affects this process
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questions
At least I raised the topic skyman1771, and thanks to the other posters relpies I have been given some interesting answers, instead of a rant which nearly sent me to sleep! 
Take a deep breath and keep the personal abuse to yourself as you are making yourself look ridiculus! Oh thats your word!
Back to DTV. So its VAS who are really pulling the strings at DTV, or maybe I'll be told I've got it wrong again. Ah well we cant all be a clever
Regarding the promise of a further injection of £12m by Peel if the councils found their part. I expect that will be similar to the £20m promised by Peel when they got the site for £500k. No doubt I've got that wrong as well but I only fly for a living so cant be too clever
Take a deep breath and keep the personal abuse to yourself as you are making yourself look ridiculus! Oh thats your word!
Back to DTV. So its VAS who are really pulling the strings at DTV, or maybe I'll be told I've got it wrong again. Ah well we cant all be a clever
Regarding the promise of a further injection of £12m by Peel if the councils found their part. I expect that will be similar to the £20m promised by Peel when they got the site for £500k. No doubt I've got that wrong as well but I only fly for a living so cant be too clever
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South side fenced off area?
Almost forgot, does anybody know who now owns the south side which has a nice new fence between airside ops and the south?
Someone mentioned it had been sold and is no longer part of the airport?
Was it One North East who paid for the new fence expecting it become a cargo centre?
Someone mentioned it had been sold and is no longer part of the airport?
Was it One North East who paid for the new fence expecting it become a cargo centre?
Southside is "supposedly" now owned by Peel holdings. If you fish around on the Peel web site for "Skylink International Business Park"
you can see the proposed development plans for the the permitted aviation related industry which was agreed at the planning stage.
A local farmer told me Peel are looking into moving the 3ft gas pipe which crosses some of the land, that would cost millions!
you can see the proposed development plans for the the permitted aviation related industry which was agreed at the planning stage.
A local farmer told me Peel are looking into moving the 3ft gas pipe which crosses some of the land, that would cost millions!
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If you look at the passenger numbers over the last few years from DTV and the loss incurred by Peel / Vancouver it would appear to be that Peel / Vancouver are paying passengers £20 each approx to use the airport !. This is not sustainable for any company and in a recession even worse. 
Cut & Paste Intellectual
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I note that Department for Business has announced land and property that it wishes to dispose of -originally acquired by One North East and now transferred to the Homes and Communities Agency (HCA)
Durham Tees Valley Airport (land)
Land lying North East of Brocks Farm, Eaglescliffe
Land East side of Carters Lane, Eaglescliffe
Land West side of Carters Lne, Eaglescliffe
Oak Tree Farm, Middleton St George (North side access road not part of JV)
Durham Tees Valley Airport (land)
Land lying North East of Brocks Farm, Eaglescliffe
Land East side of Carters Lane, Eaglescliffe
Land West side of Carters Lne, Eaglescliffe
Oak Tree Farm, Middleton St George (North side access road not part of JV)
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Further comment in respect of Peel's actions :-
SWBKCB
Having read the council's minute of 6th December, then this only seems to endorse my assumptions in respect of the dilution. The fact that it was mooted that it could take place "within 7 days", and that the Council were to formally reject any further cash injection, would in any event suggest that it may have already taken place, and will have taken place at such time the airport is disposed of. This makes business sense as it will ensure that Peel obtain a larger share of any net proceeds arising from the eventual sale of the airfield.
Within the minutes it did endorse my point that Peel Airports Limited "PAL" have indeed availed themselves of non cash funding
Nortbound A1, apologies for any earlier offence taken, which was not intended, sometimes a thick skin is required, anyhow you note that the Southside is no longer part of DTVA. On the basis that you are correct, it is of course a verifiable fact for anyone who is prepared to visit the Land Registry web site and pay the £19.95, which should also provide the sale price.
Again on the basis that “PAL” have done their ”job” properly then it is very likely that the South Side has been sold, conveniently the purchaser would likely be Peel Holdings, who irrespective of the sale price would again no doubt fund the cost through an intercompany account which could easily be negated through management charges from Peel Holdings, though even Holdings would presumably have to suffer the stamp duty !
The conclusion of all of this is that DTVA has indeed been cleaned up for a disposal, that part which is not physically divisible i.e. the minimum land boundary that PAL necessarily have had to retain intact being put up for sale, whereas all else has been stripped out.
What I do feel is worthy of comment in all of this is that it seems unlikely that the Local Authourities would have been unaware of any land disposal, and as such it may be interesting to note any comments in earlier committee minutes...public record...?
IF the land has been sold AND in the unlikely the local authorities were either unaware or appeared to do nothing at that time then perhaps there is a valid issue to be addressed. …. Northbound A1- take note.......
SWBKCB
My reading of this is that the dilution hasn't yet taken place (i.e. "PAL have indicated their intention to serve a formal share conversion notice") but don't know how the announcement of the sale affects this process
Within the minutes it did endorse my point that Peel Airports Limited "PAL" have indeed availed themselves of non cash funding
PAL have therefore notified the Councils of the intention to serve a formal share conversion notice regarding the funding it considers it has provided to DTVA in the period up to 31 October, 2010.
Again on the basis that “PAL” have done their ”job” properly then it is very likely that the South Side has been sold, conveniently the purchaser would likely be Peel Holdings, who irrespective of the sale price would again no doubt fund the cost through an intercompany account which could easily be negated through management charges from Peel Holdings, though even Holdings would presumably have to suffer the stamp duty !
The conclusion of all of this is that DTVA has indeed been cleaned up for a disposal, that part which is not physically divisible i.e. the minimum land boundary that PAL necessarily have had to retain intact being put up for sale, whereas all else has been stripped out.
What I do feel is worthy of comment in all of this is that it seems unlikely that the Local Authourities would have been unaware of any land disposal, and as such it may be interesting to note any comments in earlier committee minutes...public record...?
IF the land has been sold AND in the unlikely the local authorities were either unaware or appeared to do nothing at that time then perhaps there is a valid issue to be addressed. …. Northbound A1- take note.......
Questions and more Questions
Now where is Sherlock Holmes when you need him!!
the waters are indeed murky(and I dont mean the Tees).
No doubt all to be revealed very soon but in the meantime its probably one of the more interestinmg threads on pprune!!
Interesting that each passenger is costing Peel/vas around £20 each.
It begs the question...which organisation in their right mind and in the current economic climate would take the airport on in its present state...err non!!
the future can only be restricted private opening or closure.
Take your pick...
the waters are indeed murky(and I dont mean the Tees).
No doubt all to be revealed very soon but in the meantime its probably one of the more interestinmg threads on pprune!!
Interesting that each passenger is costing Peel/vas around £20 each.
It begs the question...which organisation in their right mind and in the current economic climate would take the airport on in its present state...err non!!
the future can only be restricted private opening or closure.
Take your pick...
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Confused? You should be!
Not being a financial wizard I have done a small amount of research ( it's a nightmare ) into stock dilution. From that scan I think that the way a firm dilutes the shares is by voting at a board meeting. With Peel owning 75% of the shares they would obviously be able to vote this through with no problems. The story is though that they now only own some 35% of the shares after VAS bought 65% of Peel Airports. Presumably VAS would not want to put more money into the black hole which is MME so they would vote against any such proposal in concert with the Local Authorities.
If this is not the case then do VAS actually exist or are they just a fancy website like our friend Mr Nigeria and if they do exist then did they actually go through with the purchase of that part of the Airports Division that they are said to own?
VAS have been strangely quiet since they are supposed to have taken over the airport. In fact mute is the word that comes to mind.
If this is not the case then do VAS actually exist or are they just a fancy website like our friend Mr Nigeria and if they do exist then did they actually go through with the purchase of that part of the Airports Division that they are said to own?
VAS have been strangely quiet since they are supposed to have taken over the airport. In fact mute is the word that comes to mind.
Confused? You are!
Paarmo - suggest you go and re-read previous posts.
VAS are a sizeable airport operator not some fly-by-night outfit. They are the majority share holders in Peel Airports, so when Peel Airports speak it's fair to assume that they are saying what VAS want them to say - so VAS haven't been mute. Peel Airports = VAS!
My understanding is that Peel as the majority shareholders can propose the share dilution but it is then up to the minority shareholders to either accept the dilution or put up the cash to maintain their level of share holdings.
As previously stated - VAS are the majority shareholders in Peel Airports so wouldn't be voting against themselves... Peel Airports = VAS!
do VAS actually exist or are they just a fancy website like our friend Mr Nigeria and if they do exist then did they actually go through with the purchase of that part of the Airports Division that they are said to own?
VAS have been strangely quiet since they are supposed to have taken over the airport.
VAS have been strangely quiet since they are supposed to have taken over the airport.
From that scan I think that the way a firm dilutes the shares is by voting at a board meeting. With Peel owning 75% of the shares they would obviously be able to vote this through with no problems.
The story is though that they now only own some 35% of the shares after VAS bought 65% of Peel Airports. Presumably VAS would not want to put more money into the black hole which is MME so they would vote against any such proposal in concert with the Local Authorities.
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What is very curious is that 2003-4, the airport was sold off for a very small amount of cash..£500,000. That is a very small amount for a whole airport. At that time, house prices and land prices were at the highest ever known, yet the airport was sold for less than a Yarm High Street house? If the word corruption has not been spoken by now, it must be at this point.
That is a very small amount for a whole airport. At that time, house prices and land prices were at the highest ever known, yet the airport was sold for less than a Yarm High Street house? If the word corruption has not been spoken by now, it must be at this point
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I may be wrong but it was my understanding the airport didn't have any debt when 'sold'.
I was also under the impression that it was a lease of 35 years, not a complete sale! Also the low purchase/lease fee wasalso probably due to the promised investment. The problem was that the local councils couldn't raise that sort of cash that was promised.
I was also under the impression that it was a lease of 35 years, not a complete sale! Also the low purchase/lease fee wasalso probably due to the promised investment. The problem was that the local councils couldn't raise that sort of cash that was promised.
Big word "corruption" - from the Northern Echo in early 2003 (my underlining):
Peel Holdings are believed to have offered to pay £500,000 for 75 per cent of the shares owned by the five local authorities who own Teesside Airport. It will also contribute £100,000 towards the costs of doing the deal. The report says the cost of transferring the airport could be as high as £500,000 - meaning the authorities may end up receiving £100,000 between them. Following the sale, Hartlepool, Middlesbrough, Stockton, Redcar and Cleveland and Durham county/Darlington councils will retain a 25 per cent share in the airport, which will eventually fall to 12 per cent. A statement from the five shareholding councils said "In reality it will result in a massive investment, running into many millions of pounds over the next five years. As was made clear by the shareholders, when the choice of Peel Airports as the 'preferred bidder' to become a strategic partner in the airport was announced in January, they believe that this is the most viable option for securing the levels of investment needed for the key projects which will enable the airport to maximise its own potential - and contribute to the regeneration of the communities its serves. The interest of the shareholders in negotiating the agreement with Peel is to maximise investment in the long-term future of the airport - not to generate short-term returns for themselves." John Williams, the leader of Darlington Borough Council, said Peel had a good track record, having already turned around the fortunes of Liverpool Airport. He said the deal was the only way forward. "Anyone who uses the airport can see that it urgently needs major investment, The £20m private sector investment will give Teesside Airport a future. Without this, it will be stuck in a cycle of decline which will eventually lead to its closure." Councillor David Walsh, leader of Redcar and Cleveland Borough Council, and a member of airport committee, said: "In the present situation, it is the only way the airport can get in the investment that it needs to prosper and grow. It has to be a calculated risk. There was no way that the local authorities would have the money at their disposal to turn it into an airport fit for the coming decades. But we are getting £20m from Peel, who are to remodel the terminal and apron, providing more slots for aircraft, and attracting retailers into the departure lounge. This money will go hand in hand with cash from One NorthEast which is going into the infrastructure and providing better access to the airport." Hugh Lang, airport managing director, said the Peel development would provide everything the public sector cannot fund - such as buildings and land - and provide long-term investment. "We are trying to identify areas of investment so that we can hit the ground running as soon as everything is signed." he said. A spokesman from Peel Airports said: "We totally endorse the statement of the shareholders." The company has promised to refurbish the main terminal building and construct a new parallel taxiway for aircraft serving a cargo depot. It will also work with One NorthEast to create a 400,000 sq ft business park on a 25-acre site, complete with its own access road, and has said it would be happy to offer each of the local authority shareholders a seat on the airport's board.
Peel Holdings are believed to have offered to pay £500,000 for 75 per cent of the shares owned by the five local authorities who own Teesside Airport. It will also contribute £100,000 towards the costs of doing the deal. The report says the cost of transferring the airport could be as high as £500,000 - meaning the authorities may end up receiving £100,000 between them. Following the sale, Hartlepool, Middlesbrough, Stockton, Redcar and Cleveland and Durham county/Darlington councils will retain a 25 per cent share in the airport, which will eventually fall to 12 per cent. A statement from the five shareholding councils said "In reality it will result in a massive investment, running into many millions of pounds over the next five years. As was made clear by the shareholders, when the choice of Peel Airports as the 'preferred bidder' to become a strategic partner in the airport was announced in January, they believe that this is the most viable option for securing the levels of investment needed for the key projects which will enable the airport to maximise its own potential - and contribute to the regeneration of the communities its serves. The interest of the shareholders in negotiating the agreement with Peel is to maximise investment in the long-term future of the airport - not to generate short-term returns for themselves." John Williams, the leader of Darlington Borough Council, said Peel had a good track record, having already turned around the fortunes of Liverpool Airport. He said the deal was the only way forward. "Anyone who uses the airport can see that it urgently needs major investment, The £20m private sector investment will give Teesside Airport a future. Without this, it will be stuck in a cycle of decline which will eventually lead to its closure." Councillor David Walsh, leader of Redcar and Cleveland Borough Council, and a member of airport committee, said: "In the present situation, it is the only way the airport can get in the investment that it needs to prosper and grow. It has to be a calculated risk. There was no way that the local authorities would have the money at their disposal to turn it into an airport fit for the coming decades. But we are getting £20m from Peel, who are to remodel the terminal and apron, providing more slots for aircraft, and attracting retailers into the departure lounge. This money will go hand in hand with cash from One NorthEast which is going into the infrastructure and providing better access to the airport." Hugh Lang, airport managing director, said the Peel development would provide everything the public sector cannot fund - such as buildings and land - and provide long-term investment. "We are trying to identify areas of investment so that we can hit the ground running as soon as everything is signed." he said. A spokesman from Peel Airports said: "We totally endorse the statement of the shareholders." The company has promised to refurbish the main terminal building and construct a new parallel taxiway for aircraft serving a cargo depot. It will also work with One NorthEast to create a 400,000 sq ft business park on a 25-acre site, complete with its own access road, and has said it would be happy to offer each of the local authority shareholders a seat on the airport's board.
Last edited by SWBKCB; 11th Jan 2012 at 06:22.
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The plot thickens!
SWBKCB, thanks for the Northern Echo piece, it makes very interesting reading on what was promised by Peel. Didn't Hugh go off on other Peel ventures and NHS boards? What happened to Mr Williams from Darlington council, and Mr Walsh (Redcar council) who was a member on the airport commitee? Did they write the contract as they seemed to be very supportive of Peel didnt they?
£500K was a very small amount to pay! I wonder if there is any small print which allows for the airport to be taken back by the councils, as the promised investment didn't materialise? Cargo centre ha, the taxi way didnt even happen!
I liked the quip by Hugh...."so we can hit the ground running"! He didnt hang around either did he!
Out of interest who from the various councils currently sit on the Airport board?
£500K was a very small amount to pay! I wonder if there is any small print which allows for the airport to be taken back by the councils, as the promised investment didn't materialise? Cargo centre ha, the taxi way didnt even happen!
I liked the quip by Hugh...."so we can hit the ground running"! He didnt hang around either did he!
Out of interest who from the various councils currently sit on the Airport board?