Star-Liat
Join Date: Feb 2003
Location: UK
Posts: 31
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A mass exodus of pilots has not surprisingly begun - from both camps. Many are choosing not to wait for their payoffs and get out of dodge.
In terms of the merger, it has come to a halt as two of the three government shareholders in Liat have finally decided to question the deal.
In a nutshell, Star's owner Stanford has offered Liat US$55m to buy him out. His bank will be lending the money and in return he will gain a 35% holding in the new airline.
Initially the govt's snapped up this offer but only now are the questioning the terms of repayment of the loan... it's not rocket science. Failure to repay within the two year period will result in Stanford taking control of the new airline. Likewise the govts are hoping to raise the repayment by an IPO. Hmmmm, who do you reckon is going to snap up the shares.
Either way, Stanford will eventually get what he wants, what he wanted six years ago when he offered to buy Liat.
In terms of the merger, it has come to a halt as two of the three government shareholders in Liat have finally decided to question the deal.
In a nutshell, Star's owner Stanford has offered Liat US$55m to buy him out. His bank will be lending the money and in return he will gain a 35% holding in the new airline.
Initially the govt's snapped up this offer but only now are the questioning the terms of repayment of the loan... it's not rocket science. Failure to repay within the two year period will result in Stanford taking control of the new airline. Likewise the govts are hoping to raise the repayment by an IPO. Hmmmm, who do you reckon is going to snap up the shares.
Either way, Stanford will eventually get what he wants, what he wanted six years ago when he offered to buy Liat.
