Swissport continues remedies regarding affiliate loan to HNA Group

posted on 31st January 2019 by Justin Burns
Swissport continues remedies regarding affiliate loan to HNA Group

Swissport said it continues the temporary remedies standstill regarding the collection of the unpaid balance of its affiliate loan to HNA Group while HNA concludes its assessment of strategic options for Swissport.

The remedies standstill was originally agreed in May 2018 and continued in October 2018.

Following the receipt of $100 million (€83 million) from HNA Group in May 2018, in partial satisfaction of HNA Group’s obligations under its outstanding affiliate loan owing to Swissport in the aggregate original principal of approximately €360 million, Swissport had agreed to forbear for a period of five months from exercising remedies to collect the remaining unpaid balance of approximately €286 million.

This agreement was continued in October 2018 and will be further continued while HNA concludes its review and assessment of strategic options for Swissport. Swissport will continue to earn a market interest rate on the residual amount of the affiliate loan.

Meanwhile, Swissport said it continued its profitable growth in 2018. The company has increased the number of passengers served on behalf of its airline clients to 282 million (up 12.5 per cent on 2017) and also expanded its cargo handling business. Air cargo tonnes handled climbed to 4.8 million (up 1.8 per cent). At year-end 2018, Swissport was present at over 300 airports in 50 countries.

Reported revenue for the first half of 2018 increased to €1.43 billion (up 4.1 per cent on 2017). In air cargo handling, Swissport’s half-year revenue amounted to €0.26 billion (up 7.3 per cent). The airport ground services business contributed €1.17 billion of revenue for the first half of 2018 (up 3.4 per cent). Group EBITDA for the first six months of 2018 increased to €116.3 million (up 35.5 per cent).

Swissport works on behalf of more than 850 client-companies, provides airport ground services for some 282 million passengers annually and handles approximately 4.8 million tons of air cargo at 122 warehouses worldwide. It stationed at over 300 airports in 50 countries on six continents.