As has been stated to this House before, the Government had previously indicated that funding would be made available to enable Shannon Development, in certain circumstances, to participate in a restructuring of the GPA Group. Shannon Development, having evaluated a proposal to take up the equity option held by Aer Lingus in GPA, had already offered to participate in an equity issue on terms and conditions consistent with a commercial investment.
I am aware of developments in relation to GPA and the General Electric Capital Corporation involving a $1.35 billion aircraft transaction and a related option for G.E to purchase an equity interest of between 65 per cent and 80 per cent in GPA on or prior to 31 March 1997.
I understand that GPA are having discussions with its existing shareholders and Shannon Development in order to clarify the proposed offer. I intend to await the outcome of such discussions and, depending on the nature of any decision taken by the Board of Shannon Development, I would propose to advise the Government in relation to any proposal which emerges.
However, in the absence of precise details at this stage it would obviously not be possible for me to say whether any investment will be made or the terms which would apply should a decision be taken to invest.