Airline catering company Gategroup Holding AG has announced that two separate meetings of bondholders and senior lenders have been called for March 19, 2021, to consider and vote on parts of the company's financial restructuring plan that is designed to position the company for a post-COVID-19 future.
The announcement comes in the wake of a convening hearing that was held on February 3 and 4.
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, have 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 (Swiss Franc) 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 Gategroup Guarantee Limited's intention to launch an English restructuring plan under Part 26A of the UK's Companies Act 2006, which will, among other things, amend certain terms of the bonds and the SFA.
Next Steps
From today (Monday February 15), bondholders are able to obtain a copy of the explanatory statement, which sets out in detail the terms and the effect of the restructuring plan as well as information for bondholders and senior lenders on how to vote on the plan, and a copy of the proxy forms for voting at the plan meetings.
If the plan is thought fit, the bondholders and senior lenders will approve it at the meetings.
Gategroup said that the meetings represent a key milestone in the process towards implementing the plan.
© 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.
