FT: the AirTanker bond issue has, not surprisingly, gone pear-shaped as the monoline insurers fall apart. The story includes some vital detail on precisely what the Defence Procurement PFI team and the consortium have been doing all this time; essentially, trying to finance the deal at an acceptable rate of interest in the middle of a credit crunch. The alternative plan, to issue bonds, is now dead, so it’s back to the banks.
Meanwhile, the VC-10 fleet soldiers on; better hope the cracks aren’t serious. (This should be an unintended benefit of the credit crisis; silly PFI deals will be really, really difficult to get away for some time to come.)