SHANNON Development has exited its involvement in GPA under the terms of the company's recently completed refinancing. Shannon invested $12.8 million in GPA in 1993 as part of the rescue of the company following its aborted flotation. The money was invested in the form of loan notes which were bought out in the refinancing for $18 million.

Shannon made its investment after Aer Lingus, one of the original GPA shareholders, said that it could not contribute to the rescue because of its own financial problems. Aer Lingus had an 8.76 per cent stake in GPA, which was worth more than £100 million before the aircraft leasing company's collapse, and which was subsequently written off.

Shannon would not have made its investment were it not for the strategic element of the investment, according to Mr Kevin Tompstone, assistant chief executive. It was necessary for at least one Irish institution to take part in the rescue in order to reassure the foreign institutions and was also in the interest of the future of Shannon as a centre for aviation related industry, he said.

He added the development agency succeeded in securing attractive commercial terms for its investment, which resulted in its convertible loan notes being bought out last month.