Airport ground services and air-cargo handler Swissport International AG has reached a deal on a balance-sheet restructuring that will preserve its business under pressure from the COVID-19 pandemic, WSJ Pro Bankruptcy reported. The debt-for-equity swap will lighten the debt side of Swissport’s balance sheet as it contends with the impact of reduced air travel on its revenues. Ownership of the Zurich-based company will pass from China’s HNA Group Co. Ltd. to a group of mostly U.K.- and U.S.-based investment funds once the restructuring is complete. A major provider of cargo handling and ground services such as refueling and aircraft cleaning, Swissport has operations at 300 airports in 47 countries. Its revenues are dependent on air travel and many of its airline customers are cutting costs due to health fears and travel restrictions related to the coronavirus. The lockup agreement with senior secured creditors including SVP Global, Apollo Global Management Inc., and TowerBrook Capital Partners “will enable us to confidently trade through the market recovery,” Chief Executive Eric Born said yesterday. Moody’s Investors Service on Friday downgraded Swissport’s corporate ratings to C from Caa2, with a negative outlook, reflecting the anticipated debt restructuring, but the prolonged stress from pandemic-induced loss of revenue.
