Esken Limited Intention to appoint administrators to the Company
March 21 2024 - 4:59AM
RNS Regulatory News
RNS Number : 7782H
Esken Limited
21 March 2024
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 Company
Suspension 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
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