Shares in Esken, formerly Stobart Group and previously Aer Arann, fell 40pc as the group is facing the potential loss of control over Southend Airport to one of its lenders in a deal intended to secure the airport’s future.
The group is reviewing a deal to settle a debt dispute with US private equity firm Carlyle, which provided financing during the pandemic.
Southend Airport, previously performing well, has struggled post-pandemic, losing bases from airlines like easyJet in 2020 and Ryanair in 2021.
The proposed recapitalization deal would significantly reduce Esken’s stake in London Southend Airport Company Limited and involve financial support to ensure the airport’s continued operation, with Esken having until March 4 to consider the terms.
A written statement from Esken said:“ Funding of the proposal agreed with the board of LSA includes support from both Carlyle and Cyrus Capital Partners to secure the future of the airport. There can be no certainty that any of these discussions will lead to a consensual agreement, but Esken believes that a consensual outcome would be in the interests of all parties and will take all reasonable steps to facilitate such an outcome. The recapitalisation proposal, if agreed to by the company or imposed on it by the courts, could have a material adverse impact on the group.”
