Swissport, a company which offers airport ground and cargo handling services, has reached an agreement ‘in principle’ for a comprehensive restructuring.
The move comes after Swissport reported a 70% year-on-year drop in revenues in the second quarter of this year amid the Covid-19 crisis.
Meanwhile, the company received a binding commitment from an ad hoc group of senior secured creditors (AHG) for interim financing of €300m.
The funding, subject to final documentation, strengthens its liquidity to sail through the current crisis and restructuring period.
The comprehensive restructuring will include significant deleveraging and provide the company with a new €500m long term debt facility. This financing will eventually replace the interim facility.
According to the company, the restructuring process involves AHG-led senior secured creditors, lenders under Swissport’s PIK facility agreement and the company’s current shareholder HNA Group.
With this restructuring, Swissport seeks to improve liquidity, as well as reduce its debt levels to support its growth post-Covid-19.
Swissport International Group president and CEO Eric Born said: “This agreement marks a transformational milestone for Swissport. The €300m of additional interim financing and the planned restructuring supported by our senior secured creditors and other stakeholders gives us the certainty that Swissport will trade successfully through the current market disruptions and emerge as an even stronger industry leader.
“It signals to our customers, our employees and all our other stakeholders that Swissport continues to be the partner they can rely upon. The agreement also represents an endorsement from some of the world’s leading investors in the fundamental strength of our business.”
The restructuring is expected to be completed later this year.
The agreement in principle and the successful completion of the transactions are subject to definitive documentation, customary conditions and regulatory approvals.
Recently, Swissport renewed a contract with airport cargo handling services supplier Qatar Airways Cargo at Schiphol Airport in Amsterdam, Netherlands.