Linklaters advises Worldwide Flight Services on negotiation and execution of US$107m Payroll Support Agreement with US Treasury under the CARES Act

A Linklaters team (with lawyers from both the London and New York offices) has advised Worldwide Flight Services (WFS) on the negotiation and execution of a US$107m Payroll Support Agreement with the US Treasury.

Funding in a total amount of approximately US$107.2 million has been available to WFS by the United States Department of the Treasury under the Payroll Support Program established by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Approximately US$76.6 million will take the form of a direct grant and around US$30.6 million will take the form of an unsecured, non-amortizing 10-year promissory note.

The team was led by partners Daniel Gendron (London), Alek Naidenov (London), Danelle Le Cren (New York) and Jeffrey Cohen (New York). Core members of the team included Elizabeth Lane (senior attorney, New York), Pathik Gandhi (managing associate, London), Elizabeth Yazgi (associate, New York), Ian Tsui (associate, London), Burc Ozcelik (senior associate, New York) and Emma Shi (trainee solicitor, London).

Founded in 1971, WFS is the world’s largest air cargo handler and one of the leading providers of ground handling and technical services with annual revenues of over €1.2 billion. Its 22,800 employees serve over 300 airlines at 198 major airports in 22 countries on five continents.

Linklaters acted for Cerberus Capital Management L.P. (Cerberus) when an affiliate of Cerberus acquired WFS in 2018 and continues to act for Cerberus and WFS.