Esken Faces Challenges Over Alleged Loan Breaches
Shares in Esken, the U.K. aviation and renewables group, have experienced a decline following a warning that an ongoing dispute with Carlyle Global Infrastructure Fund (CGI) over alleged loan breaches could disrupt other transactions. Esken emphasized that it is actively exploring alternative funding options to cover any resulting delays.
Esken's subsidiary, London Southend Airport Co. (LSA), has contested CGI's claims of acceleration and demand for early repayment. The company clarified that there have been no payment defaults under the convertible loan agreement, and LSA's cashflow has remained in line with expectations.
On Monday, Esken revealed that the disposal of non-core assets and the expected 20 million-pound ($25.3 million) funding facility from key shareholders into Esken Aviation were progressing at a slower pace than anticipated. Consequently, the terms of these transactions may differ from what was initially envisaged.
Esken intends to submit a settlement proposal to CGI in an effort to resolve the dispute.
Shares in Esken fell by 0.14 pence, or 22%, to 0.50 pence as of 0836 GMT.
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