Positioning for post-COVID future – Update on Restructuring Plan – Key Milestone Achieved


gategroup Holding AG (“gategroup”, the “Company” and together with its subsidiaries, the “Group”), is pleased to announce that two separate meetings of (i) Bondholders and (ii) Senior Lenders will be called for 19 March 2021 to consider and vote on parts of the Company’s financial restructuring plan designed to position the Company for a post-COVID future.


As announced on 26 November 2020, the Group, its shareholders, RRJ Capital and Temasek (together, the “Shareholders”) and all of the Group’s bank lenders under the senior facilities agreement dated 30 November 2018 (the “Senior Lenders” and the “SFA”, respectively) 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 (the “Transaction”).

On 11 December 2020, the Company and gategroup Finance (Luxembourg) S.A., as issuer of the CHF 350,000,000 3% bonds due 2022 (the “Bonds”), announced that, in order to implement certain aspects of the Transaction, gategroup Guarantee Limited (the “Plan Company”), a wholly owned subsidiary of the Company, had issued a practice statement letter to holders of the Bonds (the “Bondholders”) and the Senior Lenders, formally notifying them of the Plan Company’s intention to launch an English restructuring plan under Part 26A of the United Kingdom’s Companies Act 2006 (the “Plan”) which will, amongst other things, amend certain terms of the Bonds and the SFA. 

The practice statement letter is available by registering on the Plan Website at https://glas.agency/investor_reporting/gategroup-en/.

Key Milestone Achieved

The Company is pleased to announce that on 11 February 2021 (following a convening hearing held on 3 and 4 February 2021), the English Court ordered separate meetings (“Plan Meetings“) of the Bondholders and the Senior Lenders to take place on 19 March 2021 to consider, and if thought fit, approve the Plan. This represents a key milestone in the process towards implementation of the Plan and the Transaction.  

Explanatory Statement

As a key step to approving the Plan, the Plan Company has today published an “Explanatory Statement” to the Bondholders and Senior Lenders, setting out in detail the terms and the effect of the Plan. It is important that Bondholders and Senior Lenders read the Explanatory Statement carefully, and Bondholders and Senior Lenders are encouraged to participate in the Plan process. Among other things, the Explanatory Statement contains further, important details on the Transaction, the Plan, the process by which the Plan will become effective, Bondholders’ and Senior Lenders’ rights in relation to the Plan, as well as information for Bondholders and Senior Lenders on how to vote on the Plan.

Next Steps

From Monday 15 February 2021, Bondholders will be able to obtain (i) a copy of the “Explanatory Statement” which will set out in detail the terms and the effect of the Plan as well as information for Bondholders and Senior Lenders on how to vote on the Plan, and (ii) a copy of the proxy forms for voting at the Plan Meetings. These documents will be made available via the Plan Portal at https://glas-agency.appiancloud.com/suite/sites/gategroup (Bondholders having first registered on the Plan Website at https://glas.agency/investor_reporting/gategroup-en/), or, by contacting the Information Agent, GLAS Specialist Services Limited, using the details below. Further communications in this regard will be issued on 15 February 2021 and notice will also be given of the time and dates of the Plan Meeting. Bondholders are encouraged to vote at their Plan Meeting.

Xavier Rossinyol, Chief Executive Officer:
“The English Court’s decision to grant the order convening the meetings of bondholders and senior lenders to vote on the Restructuring Plan is a key milestone and a major step forward in the process towards implementation of the Group’s strategy for the post-COVID future. The terms of the Transaction will provide the Group with a strong platform to deliver on its business plan over the next five years and which is in the interests of its creditors and other stakeholders. The Plan has the support of the Shareholders and each of the Senior Lenders. In addition, a holder of in excess of 10% of the outstanding principal amount of the Bonds has confirmed their support of the Plan.”

GLAS Specialist Services Limited
45 Ludgate Hill
Telephone: +44 (0)20 3597 2940

Media inquiries

Adrian Montague

+41 44 533 70 00

About gategroup

gategroup is the global leader in airline catering, retail-on-board and hospitality products and services. gategroup provides passengers with superior culinary and retail experiences, leveraging innovation and advanced technology solutions. Headquartered in Zurich, Switzerland, gategroup delivers operational excellence through the most extensive catering network in the aviation industry, serving passengers from over 200 operating units in over 60 countries/territories across all continents. For further information, please visit www.gategroup.com.

Forward-Looking Statements

This publication contains forward-looking statements and other statements that are not historical facts. The words “believe”, “anticipate”, “plan”, “expect”, “project”, “estimate”, “predict”, “intend”, “target”, “assume”, “may”, “will” “could” and similar expression are intended to identify such forward-looking statements. Such statements are made on the basis of assumptions and expectations that we believe to be reasonable as of the date of this publication but may prove to be erroneous and are subject to a variety of significant uncertainties that could cause actual results to differ materially from those expressed in forward looking statements. Among these factors are changes in overall economic conditions, changes in demand for our products, changes in the demand for, or price of, oil, risk of terrorism, war, geopolitical or other exogenous shocks to the airline sector, risks of increased competition, manufacturing and product development risks, loss of key customers, changes in government regulations, foreign and domestic political and legislative risks, risks associated with foreign operations and foreign currency exchange rates and controls, strikes, embargoes, weather-related risks and other risks and uncertainties. We therefore caution investors and prospective investors against relying on any of these forward-looking statements. We assume no obligation to update forward-looking statements or to update the reasons for which actual results could differ materially from those anticipated in such forward-looking statements, except as required by law.