Conducting financial restructurings
6 Departments involved in restructurings which require concessions from shareholders and financial institutions should ensure that administration is presented as a realistic option, as was done in this case.
7 Before agreeing public sector financial support for PPPs in difficulty, Departments should allow sufficient time for the extent of the problem to be clarified. If urgent temporary support is required, they should use this to obtain undertakings of longer term support from parties who are not immediately contributing, as was done in this case.
8 Precisely matching new private sector investment, pound for pound and in detailed terms, as was done in this case, is a powerful strategy which can provide added assurance of Value For Money and which other Departments in similar situations should also consider.
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| The changing structure of the PPP |
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| The investment in NATS by BAA plc and the Government has resulted in changes to the structure of NATS Holdings Ltd
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| NOTE 1 The £130 million injected by BAA and the Department was applied to enable it as borrower to prepay part of the bank's loan facility. £10 million subscribed for NATS Holdings shares and £55 million subscribed for NATS Limited loan notes were invested in NATS' regulated business (added to £65 million subscribed for its loan notes) to enable it as borrower to prepay part of the bank's loan facility 2 Airline Group had rights to appoint 4 more Directors. It can now appoint only 2 more Directors Source: National Audit Office |
