L&W advises lenders on Swissport restructuring
Latham & Watkins has advised the senior secured lenders committee of the global aviation services group Swissport in a transaction valued in €2.4 billion
Effective December 21 2020, Swissport completed a comprehensive financial restructuring, which was first announced and agreed to on 21 and 31 August 2020. The lead investors are investment funds managed by affiliates of Strategic Value Partners, LLC (“SVPGlobal”), Apollo Global Management, Inc., TowerBrook Capital Partners, Ares Management, Cross Ocean Partners and King Street Capital Management, LP – all of them former senior-secured lenders of Swissport.
The transaction, completed on December 21, provides a solid foundation for Swissport to return to the path of recovery and growth. The finalised financial restructuring provides Swissport with a de-levered and strengthened balance sheet, with total existing debt reduced by some €1.9 billion, interest costs reduced by approximately €70 million and significant liquidity from a new term loan and existing cash of roughly €500 million.
In August 2020, the committee, together with other Swissport creditors, agreed to provide bridge financing of €300 million to give Swissport sufficient liquidity to facilitate its financial restructuring. This financing was implemented using, among others, a Scheme of Arrangement under English law (with recognition of US Chapter 15).
The transaction was implemented through a combination of a second English Scheme of Arrangement (also recognised under US Chapter 15) and a pre-packed administration sale to a new group of senior secured creditors.
Latham & Watkins assembled a multidisciplinary, cross-border team with professionals from its Madrid, London, New York and Washington offices, led by London office partners Yen Sum and Jennifer Brennan and associates Jack Isaacs, Misa Schmiederova, James Hollingshead and Greg Whitaker.
In Madrid, the team involved was led by managing partner Ignacio Gómez-Sancha (pictured), Finance partner Fernando Colomina, Public Law counsel José María Alonso, and associates Aitor Errasti, Carmen Alonso, Jesús Miralles de Imperial and Paloma Arizón.