Decision details

Manchester Airport - Strategic Investment - Shareholder Loans

Decision Maker: Chief Executive

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Purpose:

To give effect to the Executive’s previous ‘in principle’ decision.  The airport transformation programme that the loans are supporting should enable the future anticipated dividend rates to be paid.  Without the capital investment there is a very real risk that the level of dividend payable will reduce considerably in future years.  In 2017/18 £2.60m of airport dividend is supporting the revenue budget

 

Decision:

To approve the execution and completion of a Loan Note Issuance Agreement (and any other necessary ancillary documents or agreements) the completion of which had previously been approved in principle by the Council’s Executive on 30 October 2017.

Alternative options considered:

The funding has already been approved in principle. However, a decision could be taken not to agree to the loan but this would have implications on the revenue budget and potentially affect the future dividend levels received from MAG which are used to support other Council spending

Publication date: 11/07/2018

Date of decision: 04/07/2018