Esken Ltd (LSE:ESKN, OTC:ESKNF) faces a setback on its sale of Southend Aiport after being hit with a legal case in the High Court by Carlyle Global Infrastructure Fund over an alleged loan agreement breach.
Esken, which is in the process of selling Southend Airport, disagreed through a statement with Carlyle’s claim that it had breached the terms of a seven-year convertible loan agreement, signed in 2021.
A successful bid to buy the airport would see an “early redemption” in its loan agreement with Carlyle, according to Esken.
“The value of London Southend Airport is above the redemption value of the loan,” Esken said.
“It is in the interests of both Carlyle and Esken shareholders to achieve a successful sale.”
Esken confirmed it was looking to sell the airport in June of this year in a bid to cut costs as financial woes mount, including growing debt in the year to February.
Its loan with Carlyle had been taken out to cover existing amounts payable in June 2021.
Noting that there had been an encouraging “level of interest” in the airport, Esken confirmed it would “defend the action [by Carlyle] vigorously”.