Swissport gets US$354m funding commitment to cope with virus outbreak
GROUND handler Swissport has received a funding boost as it continues to battle through the difficult trading conditions resulting from the coronavirus outbreak
GROUND handler Swissport has received a funding boost as it continues to battle through the difficult trading conditions resulting from the coronavirus outbreak.
The company said it has secured a Euro300 million (US$353.9 million) binding commitment from an ad hoc group of senior secured creditors, subject to final documentation, which would deliver immediate liquidity for Swissport to trade through the Covid-19 market crisis and the restructuring process.
The Euro300 million adds to the more than Euro200 million in liquidity Swissport still had as of August 18. In addition, an agreement 'in principle' has been reached for a comprehensive restructuring - due to be completed later this year - and refinancing.
Group president and chief executive of Swissport, Eric Born, said: 'This agreement marks a transformational milestone for Swissport. The Euro300 milliion of additional interim financing and the planned restructuring supported by our senior secured creditors and other stakeholders gives us the certainty that Swissport will trade successfully through the current market disruptions and emerge as an even stronger industry leader.
'It signals to our customers, our employees and all our other stakeholders that Swissport continues to be the partner they can rely upon. The agreement also represents an endorsement from some of the world's leading investors in the fundamental strength of our business.'
Meanwhile, Swissport announced preliminary results for the period to June 30. Revenue for the period was Euro235.5 million, 70 per cent down on prior year. Ground handling volumes were down 88 per cent and cargo volumes down 24 per cent.
Swissport said it had seen an uptick in volumes since end of June with volumes in the first half of August. The company said that costs have been reduced by more than 55 per cent in recent months with, at some point, approximately 55,000 out of the 65,000 employees on pre-crisis furlough, unpaid leave or made redundant.
Operating losses before interest, tax, depreciation and amortisation (EBITDA) stood at Euro67 million for the second quarter compared to a Euro76 million profit in the prior year. In July, however, Swissport managed to record again positive EBITDA from better revenue.