21 Mar 2024 08:59
This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018.
21 March 2024
ESKEN LIMITED("Esken" or the "Company")
Intention to appoint administrators to the CompanySuspension of listing of the Company's shares
Esken, the aviation group, announces that, further to the announcement on 6 March, the Company has concluded (following detailed advice from advisers) that implementation of the proposed restructuring plan in relation to the Company has ceased to be commercially viable. While restructuring plans are becoming more common for English registered companies, additional issues arise under Guernsey law in relation to Guernsey registered companies (such as Esken) where the plan results in compromising the rights of members (as is the case for the proposed plan in relation to the Company).
Esken has therefore concluded that there is unacceptable risk associated with the court process to achieve the proposed outcome, which could also take considerable time to execute.
Therefore, after detailed consideration of the Company's current financial situation, and absent any further viable proposals to deliver a stable solution to the challenges faced by the Company, the board has now regrettably concluded that the Company should be placed into administration in order to protect the interests of stakeholders.
Accordingly, the directors of the Company have resolved to file documents in court today to appoint administrators from AlixPartners UK LLP to the Company. That application is expected to be approved by the court over the course of the day.
Placing the Company into administration does not breach the Recapitalisation Support Agreement, as announced on 6 March, and therefore is not expected to have any impact on the recapitalisation proposal being implemented in relation to London Southend Airport, which will continue to remain fully operational and funded under that proposal.
In light of the above, the listing of the Company's ordinary shares has been suspended with immediate effect.
Enquiries:
Esken Limited C/o Teneo
Teneo
Olivia Peters
+44 7902 771008
esken@teneo.com