so the royal bank of scotland sold its shares in rcy to prevent the appearance of a conflict of interest. I doubt it would have bothered doing that if it was not going to support the stand still agreement which was stated at the unit holders meeting(a video of this is available at the RCY website). It would not have an "interest" in making the shares worthless assuming that it was not going to support the stand still. So thats possibly 1 of the 24 banks needed for the agreement and RBS is maybe trying to convince others to support it.
The banks may decide to agree and forfeit about 90 million in interest payments for the next 2 years until after the airport link project is up and running. This time will also assist RCY to improve traffic flow, cut costs and maybe even increase tolls(and charge the flying pigs a premium to travel underground).
Best case I assume would be that RCY would be able to cover costs and interest payments by themselves or with an additional capital raising and have 40 odd years of tolling to look forward to. If not then the banks should get a better price than they would now if Clem 7 was sold.
IMHO Airport link may also struggle to achieve its predicted revenues so the better the outcome achieved for the banks involved in RCY the better for the Airport link banks.
the stand still agreement may get approved and the saga will continue.
..comments please..
my opinion only. DYOR
RCY Price at posting:
0.8¢ Sentiment: None Disclosure: Held
