London Southend Airport owner looks to secure future amid loan spat with Carlyle
London Southend Airport owner Esken is mooting a deal to secure the embattled hub’s future and resolve ongoing funding dispute with Carlyle Group.
Under the new arrangement, the aviation and infrastructure group would significantly reduce its stake to a minority interest, while the Essex hub would commit to apply for restructuring proceedings.
In a statement, Esken said it was “urgently reviewing and assessing the terms and potential financial impact of the recapitalisation proposal on the company and its wider stakeholders.” The new deal has been negotiated with both Carlyle and Cyrus Capital Partners.
“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.”
It added: “The company is also undertaking contingency planning, including exploring access to alternative funding to cover its liquidity needs. 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.”
London Southend’s Chief Executive Officer, John Upton, said: “This is great news for everyone connected
with London Southend Airport – for our people, passengers, airline partners and local communities.
“Carlyle and Cyrus both have extensive experience across the aviation industry and deep knowledge of our Airport.
“Their commitment to our future delivers both certainty and stability and will enable us to accelerate our
growth plans with their considerable investment capability and operational expertise.”
Esken shares crashed over 47 per cent this morning, following the announcement.
The firm bought the airport in 2008 for £21m, when it was known as Stobart Group. However since then a number of airlines have pulled their operations, including Easyjet, Ryanair and Wizz Air. Easyjet returned to the Essex hub in 2023.