Swissport will be under new management following a “lock-up” agreement with senior secured creditors, a press release confirmed.
The deal includes a debt-for-equity swap worth €1.9 billion in existing debt, as well as a €500 million long-term debt facility and a €300 million interim facility to help the airport services provider stay afloat.
Senior secured creditors, including SVP Global, Apollo Global Management, TowerBrook Capital Partners, Ares Management, Barclays Bank, Cross Ocean Partners and King Street Capital Management, will take over as owners.
Under the terms of the agreement, Swissport will launch a customary M&A process in parallel with other restructuring steps, with the financial restructuring expected to be completed in late 2020.
HNA Group, Swissport’s embattled Chinese owner, “will share in the value creation” contingent on a future exit valuation, read the press release.
“With much lower debt and €500m additional cash injected, we will be well positioned going forward to invest into the business and accelerate growth,” said Peter Waller Swissport’s CFO.
“We expect to see increased outsourcing of ground handling services by airlines and being able to take volumes from some financially weaker competitors,” he added.
Swissport earlier in June warned of possible layoffs involving thousands of jobs.
For the full announcement, click here.