21. To who?
(Ms Lomax) It was paid into NATS.
22. Who pays it back?
(Ms Lomax) NATS will pay it back.
23. In other words, all they paid was £50 million to get 46% of the whole of this business?
(Ms Lomax) Yes.
24. That is absolutely unbelievable. That left NATS lumbered with a debt of £735 million which was quoted as part of the purchase price, although the purchaser never paid it, because you are having to pick up this bill, are you not, NATS?
(Mr Everitt) Yes. It is a debt of the company.
25. That is 735 million you are paying for them to buy your business. What about the interest on that 735 million? That does not include the interest charge as well, does it?
(Mr Everitt) Yes. We have a loan put in place as part of the restructuring of the finances of the company at completion. It is our job as a company to service that loan both in terms of interest and to repay it.
26. You are paying the interest as well?
(Mr Everitt) Yes.
27. Over 20 years, if it were 10%, that would be another £800 million and it is probably more than that, is it not?
(Mr Everitt) I think the interest rate is around 7%
28. In that case, it is £600 million. In addition to paying back the 800 million, you are also lumbered with £600 million of interest charges, all to enable someone else to buy your business.
(Mr Everitt) It will be quite a lot less than that because we will be paying back part of the loan over the 20 years.
29. The average loan is 400 million. In 20 years it is £600 million so you are paying £1,400 million for someone else to buy half your business effectively. That is correct, is it not?
(Mr Everitt) The two shareholders, Her Majesty's Government and the Airline Group, structured the finances of the company at completion and determined that they would put this amount of debt in place. That represented the proceeds to the government-
30. That is not answering the question. The fact of the matter is that you are lumbered with a debt which is now making it impossible for you to borrow on the market even as easily as you could have done before the PPP. That is a fact, is it not?
(Mr Everitt) We have a large debt and that is making it difficult.