Trans Maldivian Airways Positioned for Growth Following Successful Restructuring and Strong Sponsor Backing From Carlyle, King Street and Davidson Kempner
MALE – Trans Maldivian Airways (TMA) finalized a restructuring with new owners Carlyle, King Street Capital Management (“King Street”) and Davidson Kempner Capital Management LP (“Davidson Kempner”). The transaction, approved by TMA’s former equity owners, is intended to help provide a strong foundation for strategic business growth. The transaction is targeted at helping return the firm to solid financial footing and paving the way for TMA to focus on enhancing its world-class seaplane operations as it expands its key role in facilitating tourism and supporting jobs in the Maldives.
TMA is the world’s largest seaplane operator with a fleet of 56 seaplanes transporting tourists from the central Male International Airport to nearby islands.
Carlyle’s Global Credit platform led the restructuring, alongside King Street and Davidson Kempner, and funds affiliated with Carlyle have become TMA’s majority owner. A newly reconstituted Board of Directors will include Lars Erik Nielsen, one of TMA’s founders, and representatives from the new owners and other industry experts. TMA management will remain the same. Financial details were not disclosed.
Christian Schmitz, Managing Director, Carlyle Global Credit, said: “TMA is an operationally strong business with an experienced management team and clear competitive advantages. We are pleased to provide the strategic capital and expertise the company needs to return to growth. As vaccines continue to be rolled out globally, we expect travel to return to pre-pandemic levels in the Maldives, which remains one of most attractive vacation destinations in the world.”
A.U.M. Fawzy, CEO of TMA, said: "This transaction marks the beginning of a new chapter for TMA. We look forward to the support of our new owners as we ramp up business and continue providing the world-class service our customers have come to expect. As we do that, the health and safety of our customers and employees remain fundamentally important to both management and our new shareholders and we will continue to follow our industry-leading protocols to ensure the welfare of those involved in TMA’s operations.”
Zachary Lewis, Managing Director at King Street, said: “Our deep experience working with aviation companies positions us well to work alongside our partners at Carlyle and Davidson Kempner as we help lead the company to a strong recovery and its next growth stage.”
Clifford Chance served as legal advisor to the senior lenders and FTI Consulting, who acted as Receivers to TMA’s holding company.
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About Trans Maldivian Airways (TMA)
Trans Maldivian Airways is the World’s Largest Seaplane operator based out of Maldives, transporting tourists from the central Male International Airport to nearby island resorts. Operating a fleet of 56 seaplanes, TMA is known for its formidable health and safety track record, as well as exceptional customer service.
About The Carlyle Group
Carlyle (NASDAQ:CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Investment Solutions. With $260 billion of assets under management as of March 31, 2021, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 1,800 people in 29 offices across five continents. Further information is available at www.carlyle.com. Follow Carlyle on Twitter @OneCarlyle.
Carlyle’s $59 billion Global Credit platform provided capital for this restructuring. Carlyle Global Credit is an active provider of strategic capital for companies in need of financing and expertise for complex situations. Carlyle plans to leverage expertise from across the firm to help grow and create value at TMA. Carlyle Global Credit’s investment strategies span the private credit spectrum: liquid credit, illiquid credit and real assets credit.
About King Street Capital Management
King Street is a $20 billion global investment management firm founded in 1995 with offices in New York, London, Singapore, Tokyo and Charlottesville, VA. With over 25 years of experience as a global credit specialist, King Street employs a fundamental, research-intensive approach across multiple strategies, markets, industries and asset classes including an expanding lending platform.
About Davidson Kempner Capital Management LP
Davidson Kempner Capital Management LP is a U.S.-registered global institutional investment management firm with more than 35 years of experience and a focus on fundamental investing with a multi-strategy approach. Davidson Kempner has more than $37 billion in assets under management with over 400 professionals in five offices, including New York, Philadelphia, London, Hong Kong and Dublin.
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