Thursday, November 20, 2008

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Lehman crash hits Lambert bonds

 




Wall Street's woes have temporarily grounded the sale of bonds to finance fixes at Lambert-St. Louis International Airport.

St. Louis Comptroller Darlene Green told airport commissioners on Wednesday that the city would hold off on selling up to $100 million in bonds until early next year. Its lead banker, Lehman Brothers, declared bankruptcy last month and couldn't go forward with its agreement with St. Louis, Green said.

Lambert Director Richard Hrabko said the airport was already "on track" with the first $16.9 million worth of projects - which includes new ceiling finishes and baggage carousels in the Main Terminal and new road signs.

The airport has enough money on hand to begin the work, Hrabko said.

But Green's statement Wednesday injects some uncertainty into financing the rest of the work. One financial analyst said the cost of borrowing would probably go up in the near term.

Engineering and architectural work also is under way on other upgrades to the Main Terminal and concourses, known collectively as the Airport Experience. The original price tag for that project was $105 million.

"We don't think that delaying (the bond sale) until next spring is a big issue with the project," Hrabko said after the meeting.

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