Esken Shares Dive After Restructuring Leaves Shareholders Empty Handed
By Ian Walker
Esken shares fell 47% in early trade after the company agreed to a restructuring plan and recapitalization of its subsidiary London Southend Airport, securing future funding of LSA but leaving shareholders empty handed.
Shares at 0839 GMT were down 0.07 pence at 0.08 pence. They are currently down 94% over the past three months.
The U.K. aviation and renewables group said Wednesday that under the restructuring, carried out with its major bondholder Cyrus Capital Partners, the 53.1 million-pound ($67.5 million) bond with Cyrus due to mature on May 8 will be converted into shares, and that Esken will be delisted from the London Stock Exchange, with a negligible return to shareholders.
The restructuring plan needs court approval and is expected to complete after the LSA recapitalization.
Under the recapitalization plan, Carlyle Global Infrastructure Fund will take a 82.5% shareholding in LSA as repayment for its GBP193.75 million loan.
In addition, GBP24.3 million of debt due by LSA to Esken Aviation will be converted into a 17.5% stake in Esken, the company said.
Esken said Cyrus will provide liquidity to the group to meet its working capital needs during this process and to allow an orderly wind down of the remaining group.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
March 06, 2024 04:07 ET (09:07 GMT)
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