Esken Limited, an aviation group, has provided an update on its subsidiary, London Southend Airport Company Limited's (LSA), dispute with Carlyle Global Infrastructure Fund (CGI). LSA has concluded, with legal advice, that there is no default or event of default which gives CGI a current right to accelerate the loan, make demand, or take enforcement action pursuant to the convertible loan agreement. Esken fully supports LSA's position and will be submitting a proposal to CGI to reach a negotiated settlement of the claims and lift the claimed acceleration and demand for early repayment.
The uncertainty of the outcome has led to disruptions in the progress of the disposal of non-core assets, potential funding facility, and the amendment and extension of the exchangeable bond. These actions were being taken to give the Group a funding horizon through to the end of 2025 in order to allow a managed sale process of LSA as it recovers. The Company is monitoring the impact of such delays and assessing appropriate contingency planning, including exploring access to alternative funding to cover these delays. If the Group is unable to resolve the dispute with CGI and is either unable to progress the transactions mentioned above or find alternative funding in the coming months, then this could have a material adverse impact on the Group.