Talks over the future of Chicago’s Midway Airport will continue thanks to a two-week extension the city has granted to a group of investors seeking to lease it for 75 years.
On Monday the city agreed to give MidCo, the Citi Infrastructure Investors-led consortium who offered $2.5 billion for the lease last September, a two-week extension to reach agreement on an extension of up to six months to bring the deal to financial close.
“So we have an extension for another possible extension,” a spokesperson for the city told InfrastructureInvestor.
Under an agreement the consortium signed with Chicago in October, MidCo had to reach financial close by 6 April or the city would have the right to pocket a $126 million break fee and hang on to Midway.
The city can now claim the break fee but it is not expected to do so unless the deal fails to reach financial close, the spokesperson added.
Last week, a person familiar with the talks told InfrastructureInvestor that the city is expected to grant the extension of up to six months.
If the deal successfully reaches financial close, it will be the largest-ever long-term lease of an airport in US history.