Results tagged “globalcreditcrisis”

Mayor Daley's scheme to lease Midway Airport to a private partnership continues to stall amid the global credit crisis. The April 6 deadline to close the deal passed on Monday, although the city has granted a two week extension on the deal, in hopes of negotiating a six month extension while a consortium of investors tries to line up the remaining cash needed to seal the 99-year lease.

Mayor Daley's dream of privatizing Midway Airport has run into trouble as the nation's credit crisis has pushed the deal back at least six months, if not indefinitely. The April 6 closing date for the deal has been canceled, while the privately owned Midway Investment and Development Company, LLC, or MidCo for short, tries to line up more financing for the deal. The city is negotiating with the consortium backing MidCo is made up of Citigroup (yes, that Citigroup) unit Citi Infrastructure Investors, YVR Airport Services Ltd and John Hancock Life Insurance Co. to line up financing for the $2.52 billion 99 year lease deal.