SOUTHEND Airport will see "no impact" despite a third of the site being sold for £120million, bosses have insisted.

Esken, known as Stobart Group until February, said it was “in the final stages of agreeing the documentation” with US private equity firm Carlyle Group.

The deal would give Esken a loan that Carlyle could convert into a 30 per cent stake in the airport, replacing the need to repay the loan.

It would inject about £100million into the rest of Esken, which has been struggling in recent months amid Covid-19 disruptions, with the remaining £20million pumped into the airport itself.

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It comes shortly after Esken pulled the plug on the former Stobart Air, because a potential buyer lost the funding to take over the business.

Bosses have insisted there will be “no impact” on Southend Airport, which has been valued at £400million.

A spokesman for Esken, said: “The group confirms that it is in the final stages of agreeing the documentation with Carlyle Global Infrastructure Opportunity Fund with regards to a long term strategic funding transaction relating to the development of Southend Airport.

“Under the proposed terms of the partnership, Carlyle would provide £120million of funding net of Carlyle costs via a loan, convertible at Carlyle’s option into an equity stake of 29.99 per cent in Southend Airport, which would release £100m of liquidity into the rest of the group.”

The airport industry has struggled throughout the Covid pandemic, with travel restrictions hampering flights getting off the ground.

The Esken Carlyle deal is subject to shareholder approval.

Executive chairman David Shearer added: “It is disappointing for all stakeholders that we have been unable to conclude the sale of Stobart Air as a going concern despite the tireless efforts of my executive colleagues, the management team of the airline and the team of advisers who have supported them.

“I am acutely aware of the impact this will have on the staff, customers and the businesses associated with the airline but the continuing impact of the pandemic in terms of lockdown and limited travel has prevented us from achieving a better outcome.”

US firm Carlyle have helped develop 18 airports across the World, including Munic and New York’s JFK.

Southend Airport declined to comment further.