The owners of Southend Airport, Esken, has announced this week that they have gone into administration.
This comes following attempts to alleviate the problems surrounding the airport’s overall debt.
Without further ado, let’s get into it…
Esken Was Aiming for Restructuring Plans…
Owners of Southend Airport, Esken, fell into administration on Thursday, as per PA.
This comes following an agreement made two weeks ago with Carlyle Global Infrastructure Fund to take a majority stake.
Such a majority stake was a result of a whopping £193m debt being owed to Carlyle.
Esken was aiming to operate a restructuring plan that would take a few months to achieve.
In a statement, the company that owns Southend Airport said the following on this:
“Further to the announcement on March 6, 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,”
“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.”
Is Southend Airport in Trouble?
This is concerning news for Southend Airport, as it’s future will now be unclear following this news.
It is unclear whether the airport will have to close at this present moment, as administrators begin their work.
Closures of smaller UK airports have been a trend in the last few years, with Doncaster as an example.
However, Doncaster is of course opening it’s doors in the future, but viability is always a question in the UK.
More news will no doubt follow regarding Southend Airport in the coming weeks ahead.
Overall…
In conclusion, all eyes now turn to the administrators, who will now begin the work of repayment via assets.
At this stage, it is too early to state whether there will be a buyer for London Southend or not.
Moving ahead, the airport provides connectivity to the local catchment area that will need to be secured.
This could provide opportunities for other London-based airport nearby, but for relative ease, this would be a blow to the community if the airport closes.
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