Southend Airport to be sold to US private equity giant
Its after a deal was agreed to settle debt with the current owners
Last updated 6th Mar 2024
Southend Airport is to be sold to a private US equity giant, after deals were agreed with current owners to settle debt.
It follows debts by Esken, formally Stobart Group, for the airport of £193.75 million, with the handover for Carlyle to take control designed to settle the debts.
London Southend Airport will now see American company Carlyle take an 82.5% stake, with Esken keeping 17.5%.
The covid-19 pandemic halted passenger numbers for Southend Airport, when international travel came to a pause.
Now, the airport is operating flights once again, with more destinations and increasing numbers of flights introduced in recent months.
In 2021, as the pandemic continued to eat into passenger numbers, the company borrowed £125 million from Carlyle to secure its finances through the crisis.
Esken had already announced the possibility of a deal last month, saying it had until March 4 to mull it over.
But later Carlyle claimed that Esken had broken the terms of its loan and asked for £200 million back. The latest deal will settle that dispute.
"The company has agreed to accede to that recapitalisation proposal in relation to LSA," it said in a statement to shareholders on Wednesday.
"This will therefore proceed on a consensual basis, rather than through a contested court process, which could be potentially destructive for all stakeholders."
Esken will also delist its shares in London and "wind down" the remaining parts of the group.
"The court process for the Esken restructuring plan is likely to take several months to conclude but, in the meantime, the future funding of LSA is secure and the board will progress the orderly wind down of the remaining group," the business said.