Originally Posted by
Greenpen
Not being a money person I don’t understand and would like a simple explanation. As I read it BA is running short of cash so flogs aeroplanes to someone very cheap to get the cash. The people putting up the cash have loadsamoney and hope the aero-industry picks up quicker than BA anticipate and can then flog the ‘planes for more than they paid.
But I guess it’s more sophisticated than that!
I don’t think they are short of cash as such, but I guess it’s more akin to a remortgaging situation. More of short to med term cash injection as I understand it.
You borrow against assets that you own and in turn get giving an amount for those assets but will clearly have to repay that amount in some way.
But the details of the exact terms, I doubt, will be known. Is this type of deal made public?
I assume it can be found somewhere eventually to understand the exact structure.
It’s an interesting move vs the state bailouts we are seeing.
PS: I have just realised there is a Companies House web link in the article in the OP post. Clicking through to the Companies House website, provides details of the agreement.