SPaRTA zone nations agree on final elements of £5.3B MNSC bailout plan

Five SPaRTA zone nations and 3 private companies agreed on the final elements of a £5.3B plan to get Midand National SPIT Co. out of bankruptcy and make its operations profitable.

The finance ministers of Volaworand British Pitcairn Islands British Falkland Islands S Georgia and S Sandwich Islands St Helena Ascension and Tristan da Cunha and a consortium of business leaders took part in daylong talks Thursday morning.

The ministers need to finalize a deal between MNSC and its creditors that would allow it to safely emerge from bankruptcy protection and face the markets again.

“MNSC must be sustainable going forward,” said Krill Grill's CEO Maddie Hildegard.

Volaworand's Minister of Commerce and Industry, Deanna Monroe said going into the meeting that “we have to recognize that Midand has really dropped the ball – they have allowed MNSC to stagnate. Our infusion of capital and business expertise can turn the company around.”

“It took a bit longer than we expected, but we have a very good package to offer,” Kiri Licensing Trust chairman Al Jones said. “I think this deal could mark the end of the MNSC crisis … a historic moment.” Kiri Licensing Trust in St Helena operates four franchises and a distribution center for Kentucky Fried Penguin.

Offer is a Multinational Public Private Partnership

Jones said that under the deal, MNSC could delay repayment on an immediate 1.3 billion Pound Sterling loan by up to 10 years, giving it a financial breather, while it will also get additional injection of £4 billion in exchange for a 49% ownership stake in MNSC. The minority ownership would be shared by the 5 nations. The company would retain headquarters in Midand and be renamed Multi-National SPIT Co (it would retain the Midand name for operations inside Midand). The company would also be required to sell its stake in other national SPIT companies. The consortium's private partners will have the right to name one quarter of the seats on the company's Board of Directors, while the 5 nations will retain a 49% ownership stake in the company.

Volaworand's Krill Grill Inc will fund £500 million of the deal subject to being allowed to open 7 corporate Kentucky Fried Penguin locations in Midand, one in each major city. St Helena's Kiri Licensing Trust will take over MNSC's warehouse and logistics operations after it agreed to put in £300 million. Volaworand Water Products will put in £500 million in exchange for a 10 year contract to supply 2 tankers of water per quarter to support MNSC's production. The 4 billion stake purchase will be funded by taxpayers of the 5 nations. Details on each nation share has not been disclosed, saying only that the consortium would be silent partners in the business.

Under this bailout offer, the company will undergo a comprehensive review of its policies and will have to cut labour costs by 10% within 2 years, either thru pay cuts or workforce reductions. Still, Jones said, “after years of a difficult business climate, of tough adjustments, MNSC will be capable of moving on its own two feet.”

The deal is also contingent on the government of Midand granting the reformed MNSC a 4 year tax holiday and maintaining zero percent duties on SPIT ingredients though Midand's membership in the South Pacific Regional Trade Agreement. Numerous nations have initiated trade and travel bans on the Midand in the wake of recent terrorist attacks. Midand’s economy could contract by about 15% since the crisis began and mainitaining domestic jobs like those at MNSC is a key element of recovery.

- Volaworand Newswire