HNA's Swissport gets $354m from creditors to fight Covid-19

The latest cash injection will add to the more than $236m of liquidity the company had on August 18

Swissport's revenue for the three months to June 30 fell 70 per cent to €235.5m. AFP

Swissport has secured nearly $354 million (Dh1.3 billion) of extra liquidity from senior secured creditors that will support operations while the aviation services company revamps amid the Covid-19 pandemic, in a move that could squeeze out Chinese owner HNA Group.

"The agreement 'in principle' on a comprehensive restructuring includes significant deleveraging and a new $590m long term debt facility, which will replace the interim facility," the airport ground services group said without naming the creditors.

It was reported in May that a trio of distressed securities investors, led by Apollo Global Management, had bought debt of Swissport and were holding talks with the company as it seeks cash to ride out the coronavirus crisis.

The latest cash injection will add to the more than $236m of liquidity Swissport had on August 18, it said. The restructuring is expected to be completed in late 2020.

"The $354m clearly is very important to give us the liquidity to confidently trade through the pandemic for the next months or year to come and also clearly gives us the liquidity to bridge the restructuring process," chief financial officer Peter Waller told journalists on a call on Friday.

"That is a committed facility, only subject to final documentation. We actually expect to receive funds in due course in coming days."

Executives declined to comment on whether HNA would remain owner, saying detailed terms of the restructuring were expected to be released within days.

"I think you are familiar with how restructurings typically turn out," Mr Waller said.

Swissport said it had managed the market disruption from the Covid-19 pandemic with stronger trading results and better liquidity than originally anticipated.

Revenue for the three months to June 30 fell 70 per cent to €235.5m, with an uptick in volumes since the end of June.