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And how does that benefit Esken share holders?
Appears despite administration the Southend Airport continues to come back. Now re-opening the Navigator Pub and Skylife Lounge. So the administration is helping to keep the business running and ways of generating additional income.
Agreed-this company was going down the toilet many years ago under Tinkler and Co-covid and passage of time supplied the handgun
Looks like standard procedure when a firm notifies the FCA that it has entered administration. Nothing to see here otherwise IMHO.
Just looked up the FCA and it looks as if when the FCA are looking into the affairs of a Company they can freeze its assets. This looks like what is happening here. I would imagine the first port of call with be FCA looking at the bonds and exchangeable loan deals that would have given the Company a greater length of time to repay the amounts as air travel recovers post pandemic. Where Esken told shareholders they had a robust defence and where they have been advertising what a great company this is to invest in? I just wish we were being told more regarding all of this where shareholders are being kept in the dark?
Understand the delisting whilst in the hands of Administrators but why are the FCA involved?
Has there been foul play (does this afford some protection to shareholders if there has?) Very strange all this? Maybe they are asking the FCA to report back on the terms of the loans and bonds and the delisting gives time to do so? I wish we were being given some background to the events.
Further to its announcements on 21 March 2024, Esken announces that, following the appointment of Clare Kennedy, Daniel Imison and Catherine Williamson of AlixPartners UK LLP as joint administrators of the Company, and following an application by Esken to the Financial Conduct Authority (the "FCA"), the listing of Esken's ordinary shares (the "Shares") on the Official List of the FCA will be cancelled with effect from 8.00 a.m. (London time) on Tuesday 2 April 2024. The Shares will cease to be admitted to trading on the main market for listed securities of the London Stock Exchange plc with effect from the same time.
I agree - there will 100% be no money for shareholders.
My only difference is that administrators / receivers always get paid - they are generally higher in the list.
Supercharge has been consistently deluded over this share and has ramped it with nonsensical noise. I just hope his delusions have not impacted other potential shareholders who are now also wiped out.
Facts are I read on Bloomberg yesterday the Carlyle Credit Managing Director Jason Ridloft is leaving the firm? Perhaps the Company is not so happy with his dealings-who knows?
Esken have appointed AlixPartners as Administrators please note they are NOT insolvency practitioners. Alix have re-administered Gen Motors, KMart, Enron Corp, and are now valued at 2.5Billion Usd. They are reknowned as Turnaround Management specialists. They also are looked upon as Transport and Aviation specialists. Given them a chance!
Roughly speaking the money will now flow as follows :
Secured creditors (Banks, finance etc...)
preferential creditors (Staff, HMRC etc...)
Essential creditors (those required to continue supplying in order to keep the business going)
Administrators - (who get their bill up as high as possible)
Noisy creditors (he who shout loudest)
The rest of the creditors
Administrators again - this time they hoover up what's remaining
Shareholder fund......99/100 this means zero!
Lets not kid ourselves here
Super charger - If I could be bothered I would timeline all the events that this car crash of a company has endured, and transpose your comments on that timeline. Just for a laugh - but as I said - I can't be bothered.
Erh, Administration does not mean RIP? It just means they have qualified lawyers and accountants looking deeply into the Companies dealings to see if they is an opportunity to re-administer reorganise it? Also it gives a chance for the recent company agreements with Companies such as those that have been in dispute with to see if they are valid agreements. So it could be a good thing. We are also told it is to protect Shareholders due to Jersey Law where diversifying owners interests is not looked upon as favourable?
Southend Airport owner Esken who also owns Eddie Stobart falls into administration,how the f... that happened.
IP-Following the trail of events. We were doing well pre-pandemic,and then it hit hard. I was surprised one of our bigger shareholders like Schroders did not come in with a rescue plan to be honest. However we saw Esken questioning the Exchangeable Loan and Bond where they told us all they had a robust defence. Later it would have been too costly to proceed to the high court? I just wonder if calling in administrators is a cheaper way to Court through the bankruptcy court, as no doubt the Loan terms will be examined. I still feel (I might be mad) but there is still hope. In fact if Esken lawyers are correct we could see Carlyle having to go back to the original agreement time frames? With cheaper rates coming there is still a chance. Could therefore be a tactical play for time and we do not know how Insurers will respond as they may be asked to make a contribution if any errors have been made, or if any defaults have been caused. Interesting this one. I also have a feeling the value of S/end Airport is far greater to Esken than what Carlyle are saying and our share should be greater if the sale/exchange does go through. In the states it is a regular thing calling a Chap11 for protection so maybe that is what Esken are thinking? It does not mean the Company will not continue in some form, but the result will be having to satisfy it would seem local laws as well as business law where contracts have to be fair.
80% gut tells me it's the end - but hey ho, you never know.
One thing I can't understand though is why the sudden change this week!
Sad day. This company was part responsible for forcing Flybe to be bought out. Now they have. By the same people.
Stockraiser and Supercharger, if not a silly question, what is your gut feel here? Have we reached the final curtain?
Interesting, although I do not expect it will apply here.
"The administration process was designed to protect a company from creditor pressure whilst a plan for rescue or restructure is put in place. One of the exit routes from administration is the sale of a company as a going concern, and this can be made on an 'open market' basis or via a pre packaged sale."
Could be an alternative way to have it out with Carlyle concerning the convertible loan agreement and also the securing bond that Esken had questioned the other day? Courts and accountants/lawyers will be looking in depth. Not sure if by accident or a canning move?
Ha, only just saw this. Since suspension my £2500 is now worth 3p.
Or do we shareholders still have a glimmer of hope?
On Thursday.... Esken said that after consulting advisers it has concluded that implementing the restructuring plan "has ceased to be commercially viable". Esken, which is registered in Guernsey, said that "additional issues arise under Guernsey law...where the plan results in compromising the rights of members," as was the case for the Cyrus restructuring plan. Consequently, Esken concluded that the lengthy court process needed to complete the restructuring came with "unacceptable risk". Maybe the Administrators will find an alternative solution? Clearly they will have the relevant experience and court support to obtain a thorough detailed examination. Could be a good thing? Questions are being asked about not only ESKEN but about the tactics of any potential bullying from bond and loan comps and we will see I am sure of the "robust defence" Esken advised shareholders of is valid. All is not lost!
You need to go all the way back to Tinkler and Co to see where this car crash started-there should be an enquiry
Will they have Court approval to not look at all aspects of the business? i.e. They will need to study the agreement with Carlyle that Esken had previously advised was one where they had a robust defence? Also the terms and proportion of the terms of the sale/takeover of Southend Airport? Perhaps all is not lost, but at least the situation for shareholders cannot get any worse. Perhaps we will see a qualified accountant and legal / court interpretation
of what has gone wrong and if it can be corrected, and who is responsible. Appointment of Administrators does not always mean bad news, but may not agree with the statements issued by the Company previously. However I agree the BOD and their lawyers may be checking their Insurance policies as shareholders ultimately will need answers! No doubt the Airport has some value to shareholders (perhaps more than what Esken have even said) and will continue to trade?
As a long suffering investor in this shower I am fuming. The arrogance, incompetence and disingenuous nature of this board and previous boards is staggering. The language they have constantly used has been boarder line misleading and dishonest to say the least.
As a fan of Southend Airport - the main reason I backed these idiots - I'm sort of glad - at least now we can hope that someone sensible will now take it in the right direction rather than the pipedream of being a significant London Airport with millions of passengers. It's a great local airport that used to have a good spread of business within an effective commercial eco-system. Viable commercial routes are of course an important ingredient but not at the cost of all the other revenue streams. Utter madness.
I feel sorry for all investors here with the exception of the directors in this company who participated in the deceitful acquisition of Flybe about 4 years ago. I hope they lose their shirts!