 Investments |
| Search News |
|
|
| Find an IFA |
|
|
| Browse |
|
| UK Spotlight |
City analysts today warned the government that the British economy is set to witness a recession which could last up to 18 months. Capital Economics predicts that the gross domestic product for the...
→
Read More
|
|
| Disclaimer |
| Financialadvice.co.uk adheres to the Financial
Services and Markets Act 2000. This site contains only factual and
readily available public information. |
|
|
| |
|
|
|
|
Tuesday 3rd June 2008
Conglomerate Ferrovial , the Spanish giant which took over BAA in a multi-billion pound deal just a couple of years ago is in talks with banks and bond holders about a restructuring of the company’s debt. The figure in question is reported to be in the region of £8 billion and despite the credit crunch and being a year in the making, the deal seems to be edging closer.
While there is no danger of the company breaching any financial covenants or falling into serious trouble, the owners of BAA thought it sensible to consolidate their various liabilities and restructure the debt into a more manageable situation. Even though the deal is within touching distance of a conclusion there are rumours that bond holders may yet request more details before agreeing to the refinancing.
It appears that they are looking to ring fence income from various assets to pay the bond holders, but details have not yet been made public. As and when BAA conclude this deal it will have been a mighty feat when you consider how the credit markets have moved over the last 12 months. However, many market observers have commented about the probable increase in the cost of the debt restructuring program compared to this time last year. |
→ Full Investments News Archive
→ Return to Homepage |
|
|
|
| Other top stories in this section:
|
|
|
|
.gif)
