Aviation services provider gategroup has reached a deal with investors RRJ Capital and Temasek to restructure its debts.
The Swiss company – which provides services including catering, onboard retail and food logistics – has been hard hit by the slowdown in air travel in the wake of the Covid-19 pandemic.
The deal provides 500 million Swiss francs (£451 million) in new funding from Singapore state fund Temasek and Asian investment firm RRJ.
This includes 25 million francs in equity and a 475 million franc subordinated, convertible loan.
A statement explained the transaction would provide the group with significant new liquidity to address short- and medium-term needs and will help establish a stable capital structure.
However, the deal is still subject to the execution of definitive documentation, customary conditions and regulatory and other approvals.
“This transaction is a key milestone for the group.
“It will position gategroup well for a recovery in the aviation sector and also support the diversification of the group.
“The agreement signifies the commitment of our shareh
Source : Breakingtravelnews