London Southend Airport has agreed a debt overhaul with creditors Carlyle Group and Cyrus Capital Partners, which are set to take over the company in exchange for providing fresh financing.

Under the proposal, the investment firms would provide as much as £32 million ($40 million) in new funding, the airport said in a statement on Monday. Esken Ltd., Southend’s current owner, is still reviewing the proposal and would keep a minority stake should the transaction proceed, the aviation group said separately.

The plan’s acceptance would end a dispute over a potential default on a £194 million convertible loan that Carlyle’s infrastructure unit extended to Southend in 2021. Carlyle was demanding an early repayment, claiming that the airport has breached the financing terms. Esken said earlier this month there was “no default or event of default.”

Esken has until March 4 to decide whether to agree to the plan or to contest it, the company said. Southend, which has struggled to bounce back following the pandemic, will ask the courts for the proposal to proceed if its main shareholder fails to offer its consent, Esken said.

Separate discussions with Cyrus over an exchangeable bond, of which it is the majority holder and due in May, are ongoing, Esken said. These negotiations may include a restructuring of Esken, and the provision of additional liquidity to the group and its subsidiaries, it said.

Esken’s shares lost almost half of their value on Monday following the update, bringing the wipeout in the stock since its 2017 peak to 99.9%.