Whitehall demanded BAA probe
Papers show government asked Merrill Lynch to look into the airport operator’s
the "robustness" of BAA’s finances before Christmas after a slump in the the airport
the Freedom of Information Act, also covered Ferrovial, the Spanish group that
is BAA’s controlling shareholder.
Competition Commission separately asked BAA to provide a "review of their financial
profile", a request that left the company "surprised and concerned".
the company and increase speculation that it may need to raise fresh debt or equity.
Some transport experts believe the group may struggle with the billions in capital
spending that are planned for Heathrow, including funds for a controversial third
did not outweigh "environmental concerns in terms of noise and air quality".
year it completed a delayed refinancing in a complex £13.4 billion deal.
fell in the UK last year for the first time since 1991 – and by lower-than-expected
receipts from the sale of Gatwick and Stansted.
shortfall of about £500m ahead of a deadline to repay £1.5 billion of junior debt
in 2011. Crimes thinks the company will need to issue about £1 billion of new
bonds, and would face a greater cash shortfall if it could not.
hiring of Fred Maroudas, Network Rail’s director of funding, as director of treasury.
Maroudas oversaw Network Rail’s £21 billion bond programme.
speculation over its indebtedness, telling investors it was in no danger of default,
and that its UK airports were "resilient".
said: "We discussed the way BAA’s bonds were trading, which was partly as a result
of broader concerns in the market around utility bonds. There was a risk, for
example of [passage deleted]. It was agreed that Merrill Lynch colleagues should prepare a paper on the
robustness of BAA’s finances for discussion . . . the paper should also cover
similar ground for Ferrovial."
the new runway at Heathrow".