Case Study - Trans Maldivian Airways
Background
- World's largest seaplane operator – fleet of over 56 seaplanes. Transporting tourists from central Male International Airport to the atolls.
- Covid 19 caused the grounding of all planes and the closure of the Maldivian borders.
- TMA found itself in a difficult situation. With no income it was unable to service its interests and principal obligations on its ~USD$312 million senior debt facilities.
- TMA was a Bain investment that required recapitalisation.
- Appointed to the board of directors to help stabilise the situation and provide support to the management of TMA.
Strategy
- Undertook a Board role to stabilise the business and ensure a smooth continuation of operations.
- Managed the airline and its stakeholders through the Covid-19 pandemic period.
- Advised andimplemented operational recommendations following the closure of borders and reopening of international travel.
- Raised DIP financing to support ongoing operations and capital needs.
- Implemented strategic opportunities to increase revenue streams and minimise costs.
- Commenced an M&A sale process of the underlying business. This had significant interest from private equity and distressed funds.
Results
- Facilitated a consensual restructuring of the TMA’s outstanding USD$312 million debt.
- Successfully restructured TMA’s senior and mezzanine debt facilities.
- Operation of the largest seaplanes continued and positioned for growth.
- Supported the business through Covid-19.
- Transferred ownership from Bain to Carlyle.