Esken Share Discussion Threads

[the stinger] 11/2/2024 15:17

CGI's choice, however after all the legals this will be worth nothing for CGI either, kamikaze by CGI.

[fenners66] 11/2/2024 13:44

Of course they say there is no case to answer- but will it get a court date ?

You should also read the "real" detail not the stock there is no case here ...

"in order to avoid costly litigation and unnecessary value destruction for all stakeholders (including CGI), Esken will be submitting a proposal to CGI with a view to reaching a negotiated settlement of the claims and thus a lifting of the claimed acceleration and demand for early repayment."

As my last post CGI can afford more legal dispute LSA cannot - hence they are likely to win.

The wording of the next bit is designed to confuse "The uncertainty of the outcome of the above has led to progress on" sounds good - until you actually read the whole sentence ...


"being disrupted significantly, with these transactions proceeding more slowly than anticipated and the terms for which may now be different than those which the Company was previously hoping to achieve"

In other words , whether there is merit or not in the claims - everything else is on hold and they are running short of time.

CGI know this , they hold a gun to their head and ordinary shareholders may complain its not fair !

But it is the BOD that picked the gun , loaded it and handed it over to CGI. They may have tried to wipe their prints off it - but it has their name on it.

[neilyb675] 11/2/2024 13:26

I think you need to read the RNS properly refuting said:

"LSA has concluded that there is no default or event of default which gives CGI a current right to accelerate the loan, make demand or take enforcement action pursuant to the convertible loan agreement. LSA has therefore disputed CGI's claimed acceleration and demand for early repayment. Esken fully supports LSA's position. As previously noted there have been no payment defaults by LSA in relation to the convertible loan agreement and LSA cashflow has been in line with expectations."

That points strongly to this being CGI trying it on.

[fenners66] 11/2/2024 13:03

Neily are you crying for the directors ? Or current shareholders perhaps?

You may think that CGI are acting in bad faith - but it was the Esken directors that went to them in the first place.
They got themselves into this mess and if they get taken advantage of - this is what history warns us will happen if you let it.

I started my interest in this share many years ago when I looked at the high dividend yield and discovered it was uncoverered so swerved it.
I was told on here that the dividend would be paid out of the cumulative cash from the haulage sale and that would cover until it was paid from profitability.
I said that there was many a slip between cup and lip and that profitability was a long way away.
Meanwhile any BOD willing to give away all of the cash until then were not the right BOD.
So it has proven.
Then I warned about debt holders - as I always refer to Mike Ashley and DEBS, he bought the shares instead of the debt and lost a £100m and learned from the mistake.

Not surprised the debt holders are leveraging and looking to take the assets here - why wouldn't they ?
They are a business with owners , not a charity.
Since they probably have more cash and can afford a long legal fight - they will likely win...

Another lesson learned ?

[neilyb675] 11/2/2024 12:50

David Shearer, CGI’s motives are clear: to pick up a potentially valuable London airport at a knockdown price.

“We are just at an inflection point when you see the real value of this airport over the next two or three years, and they have concluded ‘Wait a minute, let’s take this airport’,̶1; he said.


CGI saw an opportunity. The buyout fund manager had previous experience investing in airports, though on a slightly different scale to Southend. CGI is a significant investor in the development of a new terminal at New York’s JFK Airport.

The firm, founded by billionaires including David Rubenstein, initially approached Esken in April 2020, Shearer said. By August the following year, CGI agreed to provide a convertible loan of £125mn to the company giving it a nominal valuation of £400mn.


Last September, CGI filed a claim in the UK High Court alleging the airport was in breach of the loan agreement. The investment group is now seeking the repayment of nearly £200mn four years early, a figure that includes the original sum lent to Southend as well as the interest due up to maturity.

Under the loan agreement, CGI was supposed to approve capital expenditure by the company above a certain level, a person familiar with the terms said. After one outlay, the US investor deemed Esken to be in breach.

“There have been many repeated and continuing defaults of the convertible loan agreement by London Southend Airport since 2022,” CGI said. “CGI will take all necessary steps to vigorously defend its investment in light of the defaults that have occurred.”

Esken this week announced to the London Stock Exchange that it had investigated CGI’s claims and believed there had been no default.

CGI maintains it just wants to get its money back. “CGI has made numerous proposals to Esken and the airport to secure the airport’s long-term future, including up to £32mn of new funding,” the firm said.

For Esken, the airport remains the last remnant of an empire that once spanned haulage, energy and infrastructure.

The company’s market capitalisation has shrivelled to £4.3mn. Another investment in Carlisle airport has also been battered by the pandemic.

It plans to wind down and return money to shareholders after the airports are sold.

Shearer said if he was able to do that, then he would look back on the chapter with “a degree of pride”.

“My sole objective is to make sure the airport doesn’t close. But if CGI decided to adopt a scorched earth policy, who knows what might happen.”

[jotoha2] 10/2/2024 02:53

Neilyb , sorry to say in Auction will not help this bunch of Birdbrains , company has been poorly managed for years , and presently it looks highly unlikely that there will be anything left once the vultures have torn the corpse to pieces.

[neilyb675] 09/2/2024 15:36

IN AUCTION.......is news about to land.

[jotoha2] 05/2/2024 19:52

Just shows the quality of people running a lot of fairly large companies , inept is being kind , as for major holders , would not trust them to look after my hard earned.

[neilyb675] 05/2/2024 13:23

Of most interest to me is the line about ESKN making a proposal to CGI. They state: "Esken will be submitting a proposal to CGI with a view to reaching a negotiated settlement of the claims and thus a lifting of the claimed acceleration and demand for early repayment."

So, CGI put a 16th Feb deadline in place for settlement, so I would expect the proposal from ESKN to be put to CGI either now or very shortly. Expect a further RNS this week or early next. This is on a knife edge, pretty much binary bet. Win big, lose big from this price.

[roddyb] 05/2/2024 10:12

Complicated wording for a cluster-f@ck of a situation that the Board have once again sleep-walked into.

Anyone else still speculating that this will "fly to the Moon"?

[neilyb675] 05/2/2024 10:11

Sell 100000 ESKN - ESKEN LIMITED ORD GBP0.10 at a price of 0.5075p

Buy 100000 ESKN - ESKEN LIMITED ORD GBP0.10 at a price of 0.504p

Backwardation

[neilyb675] 05/2/2024 08:08

0.55 - 0.70 (GBX) at 08:05:20
on Market (LSE)

[fenners66] 05/2/2024 07:51

"then this could have a material adverse impact on the Group."

A group that is already massively loss making, who's ownership of assets is going to be up for debate pending debt holders action , who's shares are already around minimal value....

If there is no case - then no need to negotiate - you just ask a judge to throw it out...

Owning the debt gets you the assets from the long game with a company that loses money.

[neilyb675] 05/2/2024 07:21

Further to the announcement issued on 23 January 2024, Esken, the aviation group, announces that its wholly owned subsidiary London Southend Airport Company Limited ("LSA") has, in conjunction with its legal advisers, investigated the validity of the alleged breaches of the convertible loan agreement entered into between LSA and Carlyle Global Infrastructure Fund ("CGI").

LSA has concluded that there is no default or event of default which gives CGI a current right to accelerate the loan, make demand or take enforcement action pursuant to the convertible loan agreement. LSA has therefore disputed CGI's claimed acceleration and demand for early repayment. Esken fully supports LSA's position. As previously noted there have been no payment defaults by LSA in relation to the convertible loan agreement and LSA cashflow has been in line with expectations.

Notwithstanding Esken and LSA's robust position in relation to CGI's claimed acceleration and demand for early repayment, and in order to avoid costly litigation and unnecessary value destruction for all stakeholders (including CGI), Esken will be submitting a proposal to CGI with a view to reaching a negotiated settlement of the claims and thus a lifting of the claimed acceleration and demand for early repayment.

The uncertainty of the outcome of the above has led to progress on (i) the disposal of non-core assets; (ii) the potential £20 million funding facility from certain of Esken's larger Shareholders into Esken Aviation and (iii) the amendment and extension of the exchangeable bond, all as referred to in previous announcements, being disrupted significantly, with these transactions proceeding more slowly than anticipated and the terms for which may now be different than those which the Company was previously hoping to achieve. These actions were being taken to give the Group a funding horizon through to the end of 2025 in order to allow a managed sale process of LSA as it recovers. A successful sale of LSA would see CGI repaid as a priority and ahead of its maturity date.

The Company is monitoring the impact of such delays and assessing appropriate contingency planning, including exploring access to alternative funding to cover these delays. If the Group is unable to resolve the dispute with CGI and the Group is either unable to progress the transactions mentioned above or find alternative funding in the coming months, then this could have a material adverse impact on the Group.

[roddyb] 02/2/2024 10:07

Fly to the moon? Are you having a laugh? This board proved they couldn't run a domestic UK airline let alone an inter-planetary flight! This board has DESTROYED everything in its path until finally there appears to be one asset left - do you really think it is unencumbered with debt?

This is one of the most tragic examples of UK corporate mismanagement case studies of the decade.

[neilyb675] 31/1/2024 08:22

0.60 - 0.85 (GBX) at 08:11:28
on Market (LSE)

[neilyb675] 30/1/2024 15:53

after hours RNS imo, deal been done, CGI on board this will fly to the moon

[stluke] 30/1/2024 15:37

News tomorrow!?

[neilyb675] 30/1/2024 14:41

0.70 - 0.80 (GBX) at 14:39:34
on Market (LSE)

[neilyb675] 30/1/2024 14:37

0.60 - 0.80 (GBX) at 14:33:28
on Market (LSE)

[neilyb675] 30/1/2024 14:35

Chunky buy.....21k is not punt money. Deal done and this will go ballistic.

[neilyb675] 30/1/2024 12:08

0.70 - 0.75 (GBX) at 12:07:37
on Market (LSE)

[neilyb675] 29/1/2024 15:36

0.45 - 0.60 (GBX) at 15:36:10
on Market (LSE)