Swissport’s owner, struggling Hainan-based conglomerate HNA has agreed to a restructuring that will see €1.9 billion of debt to be converted into equity, or written off, while the airport services firm also receives an €900 million in additional liquidity
Debt-holders have agreed that €1.9 billion of debt will be converted into equity or extinguished, Swissport said in a statement on Monday. The Switzerland-based company has also finalised a €500 million long-term facility and a €300 million additional interim facility.
Swissport said in a statement that secured a significant injection of new capital and a substantial reduction of its debt from the deal, brought to a close “months of negotiation” and have created “a path to recovery”.
“Today’s binding agreements secure Swissport’s long-term future. We are pleased that a consensual deal has been reached with a majority of our creditors and our current shareholder,” says Eric Born, chief executive of Swissport International. “The restructuring, and the robust financial platform it brings, will enable us to confidently trade through the market recovery and positions Swissport as the first choice partner for airlines around the globe.”
“Swissport is one of the first companies globally to agree to a restructuring following the outbreak of the COVID-19 pandemic. With much lower debt and 500 million euros additional cash injected, we will be well positioned going forward to invest into the business and accelerate growth. We expect to see increased outsourcing of ground handling services by airlines and being able to take volumes from some financially weaker competitors,” adds Peter Waller, the firm’s chief financial officer.
The lenders involved in the debt-for-equity swap are: SVP Global, Apollo Global Management, TowerBrook Capital Partners, Ares Management, Barclays Bank , Cross Ocean Partners and King Street Capital Management.