Swissport delays collection of loan from the HNA Group

posted on 9th October 2018 by Justin Burns
Swissport delays collection of loan from the HNA Group

Swissport has extended 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 the handling company.

The remedies standstill was originally agreed in May 2018. Following the receipt of $100 million (approximately 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 amount of approximately 360 million.

Swissport had agreed to forbear for a period of five months from exercising remedies to collect the remaining unpaid balance in the amount of approximately 286 million.

This agreement will be extended 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.

Swissport said it continues its trajectory of profitable growth. Reported revenue for the first half of 2018 increased to 1.43 billion (up 4.1 per cent on 2017). Trending continued to be favorable for the July to September period.

The handler said in the cargo services business, half-year revenue amounted to 0.26 billion (up 7.3 per cent) and its ground handling business recorded 1.17 billion of revenue for the first half of 2018 (up 3.4 per cent). Group EBITDA increased to 116.3 million (up 35.5 per cent).