Esken is currently reviewing a recapitalization proposal aimed at resolving a dispute related to a convertible loan that could have a significant impact on the group.
Negotiations with Carlyle Global Infrastructure Fund and Cyrus Capital Partners
The U.K.-based aviation and renewables company announced on Monday that it has been in discussions with Carlyle Global Infrastructure Fund and Cyrus Capital Partners regarding the proposed recapitalization. The plan involves funding from CGI and Cyrus Capital Partners, with a commitment from London Southend Airport (LSA) to seek court approval for a restructuring plan.
Potential Impact on Esken Aviation’s Shareholding
Esken Aviation, a subsidiary of LSA, would see a reduction in its shareholding to a minority interest as part of the proposed agreement. However, both Esken and LSA must reach an agreement on the proposal by March 4 for it to move forward.
Slowed Progress in Asset Disposal and Funding
While the company has been working on disposing of non-core assets and securing a potential £20 million funding facility from its major shareholders for Esken Aviation, progress has been slower than anticipated. As a result, Esken is exploring alternative funding options and conducting contingency planning to address liquidity concerns.
