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8-K - Macquarie Infrastructure Corp | v172888_8k.htm |
EXHIBIT 99.1
125 West 55th Street | Telephone | +1 212 231 1000 |
New York, NY10019 | Fax | +1 212 231 1828 |
UNITED STATES | Internet | www.macquarie.com/mic |
NEW YORK, NY – January 28,
2010 – Macquarie Infrastructure Company (NYSE: MIC) announced that
its airport parking business, Parking Corporation of America Airports
(“PCAA”), has entered into an asset purchase agreement with Bainbridge ZKS
- Corinthian Holdings, LLC. The agreement, which is subject to
approval by the bankruptcy court in Delaware, will result in Bainbridge
ZKS - Corinthian Holdings, LLC acquiring the assets of the airport parking
business for $111.5 million, subject to certain adjustments.
The
signing of the asset purchase agreement is the first step in a bankruptcy
court-led sale. Today, PCAA and its subsidiaries also commenced
voluntary Chapter 11 cases with the bankruptcy court for the District of
Delaware. If approved, the transaction is expected to close
within the first half of 2010.
“The
previously disclosed process involving the airport parking business is
moving ahead as expected,” said James Hooke, Chief Executive Officer of
Macquarie Infrastructure Company. “Following a sales process,
the business has negotiated an agreement with a bidder who will take
matters forward within the context of a bankruptcy filing and asset sale,”
he added.
The
sale of the airport parking business and the repayment of MIC’s holding
company level debt reported in December, 2009 provides shareholders with
resolution on the two highest priority issues identified by management in
mid-2009.
The
sale would result in the elimination of approximately $201.0 million of
current debt from MIC’s consolidated balance sheet. The debt in
excess of the sale proceeds used to repay such debt would be booked as
income (cancellation of debt income). MIC would also record
proceeds in excess of the business’ assets as a gain on sale. As a part of
the bankruptcy sale process, all cash proceeds would be paid to creditors
of the business and not to MIC.
MIC
has previously written the value of its equity in the business down to
zero. The value of the property, plant and equipment of the
business has been written down to approximately $84.0 million and the
value of the intangible assets has been written down to
zero. The airport parking business comprises 31 facilities in
20 major commercial airport markets around the country.
In
a related matter, MIC expects to record a non-cash charge in the fourth
quarter of 2009 to increase its valuation allowance for deferred tax
assets. The amount of the charge is being reviewed, but is
likely to be in a range of $40.0 to $60.0 million. While the
Company believes it will generate positive taxable income in the future
and utilize its deferred tax assets, it does not believe it meets the
proscribed accounting standard of sufficient positive evidence to avoid
recording the increase. The cancellation of debt income that is
expected to be recorded on closing of the sale of the airport parking
business could result in the reversal of a significant portion of the
valuation allowance.
The
charge is primarily due to impairment charges recorded in the first half
of 2009, including those relating to the airport parking
business. The charge also reflects the impact of the sale of a
49.99% interest in MIC’s district energy business in December that
resulted in removal of that business from MIC’s consolidated income tax
return.
About
Macquarie Infrastructure Company
Macquarie
Infrastructure Company owns, operates and invests in a diversified group
of infrastructure businesses providing basic, everyday services, to
customers in the United States. Its ongoing businesses consist
of three energy-related businesses including a gas production and
distribution business (The Gas Company in Hawaii) and controlling interest
in a district energy business (Thermal Chicago), and a 50% indirect
interest in a bulk liquid storage terminal business (International-Matex
Tank Terminals). MIC also owns and operates an aviation-related
airport services business (Atlantic Aviation). The Company is
managed by a wholly-owned subsidiary of the Macquarie
Group. For additional information, please visit the Macquarie
Infrastructure Company website at www.macquarie.com/mic. MIC-G
MIC
is not an authorized deposit-taking institution for the purposes of the
Banking Act 1959 (Commonwealth of Australia). The obligations
of MIC do not represent deposits or other liabilities of Macquarie Bank
Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or
otherwise provide assurance in respect of the obligations of
MIC.
For
further information, please contact:
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