Stobart Air sale delayed after buyer hits financing hurdle

The proposed sale of regional operator Stobart Air and Carlisle Lake District airport has hit turbulence after the buyer’s proposed financing for the deal fell through. Esken, which rebranded from Stobart Group, agreed in April to sell Stobart Air Unlimited Company, which operates regional flights under a franchise agreement for Aer Lingus, and Stobart Air (UK) Ltd, the owner of Carlisle Lake District airport to Isle of Man-based investment firm Ettyl. Prior to the completion of the sale of Esken further agreed to take back 100% ownership of aircraft leasing company Propius, for GBP1. The energy and transport company agreed to retain responsibility for the continuing lease obligations of Propius under the existing lease arrangements until April 2023. The deal was contingent on certain change of control and bank facility consents that had been expected in early May. However, on 28 May, Esken said in a London stock exchange update that the completion was taking longer than planned due to the change of control consents not being obtained. In a second 28 May update, released after the stock market had closed, Esken said it had become “aware that Ettyl’s proposed financing for the transaction is no longer available” and that Ettyl was in discussions over another potential source of financing.<br/>