Esken Limited, an aviation group, has provided an update on the legal dispute with Carlyle Global Infrastructure Fund (CGI) and its strategic plans for London Southend Airport (LSA). The company's subsidiary, LSA, has submitted its defense in response to CGI's court claim alleging a technical breach in a convertible loan agreement. CGI has further alleged breaches and issued an acceleration notice, demanding repayment of the loan by February 16, 2024. Esken is confident in LSA's position and is investigating the alleged breaches with advisors. The company believes that any acceleration would have significant adverse implications and is disappointed by CGI's actions. Esken and LSA plan to engage with CGI to resolve the issues.
Despite the challenges, Esken sees LSA as an attractive strategic airport asset in the medium term, as aviation markets and the airport continue to recover from the effects of the COVID-19 pandemic. The company continues to support LSA's liquidity needs and believes in the considerable value of the business. Esken is making progress in addressing the maturity and terms of the Exchangeable Bond and is focused on seeking a new owner for LSA to crystallize shareholder value and repay the convertible loan instrument ahead of its maturity date. The company is actively working towards the sale of its non-core assets and seeking a long-term partner for LSA to support future growth.
Esken Limited can be reached through Teneo for further inquiries.