Relevant Document:Full Covenant Report 2023 Notes
French ground-handling services company Worldwide Flight Services, or WFS, has mandated Milbank and PJT as its legal and financial advisors in anticipation of debt talks, sources told Reorg.
The group is more focused on cargo as opposed to passenger ground-handling services than its peer Swissport, which has also
hired legal and financial advisors in recent weeks. However, since a significant portion of cargo is normally transported in passenger aircraft there has been a reduction in volumes, sources commented.
Sources said lenders are waiting to see what owner Cerberus Capital might suggest to safeguard WFS’ liquidity before organizing. Cerberus
acquired the company in 2018.
The company said in early March that it expected revenue in the first quarter of 2020 to be 5% lower than the first quarter of 2019 due to the impact of coronavirus.
Based on information then available, the resulting EBITDA impact on the first quarter of 2020 in absolute terms was expected to be lower than the revenue impact, given the actions taken by the company to reduce costs.
The company added that it is expecting to mitigate the impact of the virus on liquidity as of the end of March 2020, which is subject to normal seasonal variance, and is therefore expected to be lower than at the end of December 2019.
Reorg published a covenant analysis of the group’s 2023 notes HERE. Further information on the notes is available HERE.
-- Aurelia Seidlhofer