Debt-laden airports operator BAA could be pushed into bankruptcy if its forced sale of Gatwick and Stansted airports becomes a fire sale, according to the group's debt financing contracts, the Daily Mail reported.
BAA, owned by Spanish construction group Ferrovial, is being made to sell Gatwick, Stansted, and either Glasgow or Edinburgh airports by the Competition Commission.
The Heathrow owner restructured US$19.1 billion of debts last November. But the small print in its debt financing deal with lenders says no assets can be sold for less than 85 percent of their value.
But with passenger numbers slipping, and the prices being paid for infrastructure investments falling, it leaves BAA in a tight spot if it has to accept a low bid for any of its hubs.
The group has already put Gatwick up for grabs, and has three bidders in the final round of the $2.3 billion auction.
However, a winning bid of less than $2 billion could see it breach agreements with banks, forcing lenders to call in loans. |
