AutostradaWielkopolska S.A. (AWSA) is a group of 18 companies that was successful at striking a discount to construct and run the first private toll road service in Poland. In June 2000, WojciechGebicki, AWSA's CFO, was getting ready for a meeting with thetop banker for the project to talk about the apprehensions they were having about the traffic predictions and profit speculations. Taking account of their apprehensions and worries, the bankers are requesting the investors to add another e60 to e90 million of equity into the agreement – which is a considerable increase keeping in view that the project’s overall cost is e934 million and the fact that sponsor's presnt equity commitment is that of e235 million. This appeal represents a noteworthy issue forGebicki (AWSA) as the concession is designed tohas limited options lift to tackle the issue. This case illustrates the deal design and encourages students to agree or disagree with Gebicki’s perspective that the primary risks have been shed light on, evaluated and warded off in a manner that the prime investors are protected without the need of additional equity injections.
Who are the parties involved?
The features of this project finance
The original financial structure proposed by Wojciech Gebicki (Vice President-Finance and Chief Financial officer of Autostrada Wielkopolska, SA
How was done the senior debt? ( obligations, commitments, provisions, risks regarding this debt)
The feasability of the forecast of toll revenues