DHL demands USD 93 Million from ABX
The tempestuous relationship between DHL and ABX Air turned even testier Jan. 14 when DHL demanded ABX prepay a USD 93 million note issued as part of the DHL spin-off of the air line in 2003, ABX reported to the Securities and Exchange Commission.
DHL says the recent USD 350 million ABX acquisition of Cargo Holdings International constitutes a “change of control” of ABX under terms of the note. ABX says the purchase resulted in no change of control.
Anticipating possible problems with the note, ABX Air had made arrangements to borrow up to USD 61 million from certain former significant CHI shareholders if the acquisition prompted DHL to demand ABX to prepay the note.
ABX also entered a USD 345 million credit agreement related to the CHI deal that should prevent a default of the note due to the DHL prepayment request, the airline reported. The company has requested an extension of period for meeting the agreement requirements to 15 days from the current five.
