Gatwick-3
Join Date: Sep 1999
Location: UK
Posts: 746
https://www.bbc.co.uk/news/uk-england-sussex-55660837
Sad but not unexpected news that Norwegian is axing long haul and focusing on a core Nordic operation
Sad but not unexpected news that Norwegian is axing long haul and focusing on a core Nordic operation
Join Date: Aug 2008
Location: bishops stortford herts
Posts: 1,722
Gatwick Airport has borrowed a further £75m this week from the Government`s Covid CCFF fund for a total now of £250m with a further option available which could take the total borrowing to £300m.
Join Date: Jul 2002
Location: In the sticks
Posts: 8,241
An empty airport yet Jet Blue can’t get any slots https://simpleflying.com/jetblue-london-slots-complain/
Join Date: Jul 2003
Location: Under the flight path
Posts: 2,365
racedo
I disagree. The money doesn't need to be repaid out of profits, it can be repaid from future borrowings. LGW has an enterprise value of >£1.5bn, so an extra £300m borrowings should not be unfeasible to arrange and service.
I disagree. The money doesn't need to be repaid out of profits, it can be repaid from future borrowings. LGW has an enterprise value of >£1.5bn, so an extra £300m borrowings should not be unfeasible to arrange and service.
Join Date: Nov 2008
Location: No longer welcome status
Posts: 228
Loan is never repaid out of profits, it is paid out of cash flow, interest is the only thing taht gets charged against profits.. Profits generate that cash flow and it is unlikely Gatwick will be making profits this year or next. Interest on external borrowings is likely to be in the 5% range which means Gatwick has to find £15 million a year from profits to just fund the interest.
Join Date: Nov 2008
Location: No longer welcome status
Posts: 228
southside bobby
That is just the loan term, Govt have really few options if they don't repay. Loan will just gets extended and written off in 10 years. Gatwick just say we are not investing in any imporvement until loan is repaid.
That is just the loan term, Govt have really few options if they don't repay. Loan will just gets extended and written off in 10 years. Gatwick just say we are not investing in any imporvement until loan is repaid.
Join Date: Sep 2008
Location: Blighty
Posts: 4,283
If LGW cannot repay the loan.... then it likely means there are not enough passengers going through the airport to need investment in improving facilities
Banks typically categorise defaulters of loans into either "Cannot pay" or "Do not want to pay". There are ample ways to deal with the 2nd category along with plenty of case law - LGW forms a real physical asset against which a land charge can be raised in the event of default, and (unlike some airlines) is not just a confidence trick
Banks typically categorise defaulters of loans into either "Cannot pay" or "Do not want to pay". There are ample ways to deal with the 2nd category along with plenty of case law - LGW forms a real physical asset against which a land charge can be raised in the event of default, and (unlike some airlines) is not just a confidence trick
Last edited by davidjohnson6; 24th Jan 2021 at 17:47.
Join Date: Nov 2008
Location: No longer welcome status
Posts: 228
Taking a second or third charge is worth nothing because you have zero chance of getting anything. An airport without passengers is worth not a lot and no where close to the value when its owners took the loans out. Those who have the 1st charge get paid first and there will be little or nothing left for anybody after.
Join Date: Nov 2008
Location: No longer welcome status
Posts: 228
Buster the Bear
Good luck with that idea.
https://commonslibrary.parliament.uk...fings/sn01079/
Student debt is £140 billion and that should be easy, best estimates are that only 25% of 1.3 million current under graduates will repay in full.
Good luck with that idea.
https://commonslibrary.parliament.uk...fings/sn01079/
Student debt is £140 billion and that should be easy, best estimates are that only 25% of 1.3 million current under graduates will repay in full.