Airline catering company Gategroup Holding AG has announced that the English Court has approved the English law restructuring plan under Part 26A of the UK's Companies Act 2006, a key part of the financial restructuring designed to position Gategroup for a post-COVID-19 future. The financial restructuring is expected to complete in April of 2021.
Background
On November 26, 2020, it was announced that Gategroup, its shareholders, RRJ Capital and Temasek, and all of the group's bank lenders under the senior facilities agreement dated November 30, 2018, had agreed to the key terms and conditions of a recapitalisation of the company and amendment of the terms of the group's financial indebtedness.
On December 11, 2020, the company and Gategroup Finance (Luxembourg) S.A., as issuer of the CHF 350,000,000 3% bonds due in 2022, announced that, in order to implement certain aspects of a recapitalisation of the company and amendment of the terms of the group's financial indebtedness, Gategroup Guarantee Limited, a wholly owned subsidiary of the company, had issued a practice statement letter to holders of the bonds and the senior lenders, formally notifying them of the Gategroup Guarantee Limited's intention to launch an English restructuring plan under Part 26A of the UK's Companies Act 2006, which will, amongst other things, amend certain terms of the Bonds and the SFA.
On March 19, 2021, 99.98% by value of the bondholders present and voting at the bondholder meeting voted in favour of the plan, and 100% by value of the senior lenders present and voting at the senior Lender meeting voted in favour of the plan, being in excess of the requisite statutory majority in each case, a key milestone in the financial restructuring.
English Court Approval
Gategroup has now stated that it is pleased to announce that the English Court approved the plan at a hearing on March 26, 2021. The plan will become effective when the English Court's order approving it is delivered to the UK Companies Registry, which is expected to occur on or around March 29, 2021.
The recapitalisation of the company and amendment of the terms of the group's financial indebtedness is expected to complete in April of 2021 upon the implementation of the final restructuring steps. From the completion date, the SFA and the bonds will be amended as set out in the plan, and the new funding to be provided by the shareholders will be made available to the company. Gategroup said that it will announce the completion of the recapitalisation of the company and amendment of the terms of the group's financial indebtedness in due course.
© 2021 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.
