Esken, the embattled owner of Southend Airport, has received a proposal that would see it hand over control to private equity firm and loan provider Carlyle.
Shares in the former Stobart Group were in freefall again today as the company said it was mulling over the deal, which would see its stake in Southend Airport (LSA) reduced to a “minority interest”.
Esken and Carlyle have been at loggerheads for a while, leading the private equity group to demand repayment of a £200 million loan issued to the airport owner.
In a statement, Esken said it had “negotiated a recapitalisation proposal with Carlyle and has until 4 March to decide whether to accept the plan".
“Esken, together with its advisers, is urgently reviewing and assessing the terms and potential financial impact of the recapitalisation proposal on the company and its wider stakeholders and will then decide whether to accept the terms of the recapitalisation proposal,” the statement said.
“Funding of the proposal agreed with the board of LSA includes support from both (Carlyle) and (Cyrus Capital Partners) to secure the future of the airport,” the business said.
Talks are ongoing to secure funding for working capital, added the statement.
Shares in Esken fell 38% to 0.25p valuing the group at just £2.2m.