Ivan Yates
Question:121 Mr. Yates asked the Minister for Enterprise and Employment if it is still the Government's intention to inject equity into GPA through SFADCo; and if so, the level of any such equity.
Written Answers. - Injection of Equity to GPA.
The Minister of State, Deputy Brennan, indicated in the House on my behalf on 23 March last that funding would be made available to enable Shannon Free Airport Development Company, in certain circumstances, to participate in an equity issue which GPA Group plc. was then planning as part of its then recapitalisation programme.
During the course of an Adjournment debate on 13 May 1993, which followed press reports of certain agreements between GPA and General Electric Capital Corporation, I was asked whether the proposed equity investment in GPA would still be proceeding. In reply, I indicated that I would be awaiting the outcome of further discussions between GPA and Shannon Development and, depending on the nature of any decision taken by the Board of the latter, would be advising the Government in relation to any proposal that emerged.
Arising from those further discussions, Shannon Development has recently recommended, and it has been agreed, that the company should invest US $13 million in GPA Group plc. as part of an agreed overall restructuring of the Group.
In accordance with the outcome of the negotiations which took place, the investment is to be in the form of second secured loan notes and second secured convertible loan notes.