By Dominic Chopping

 

Icelandair Group Hf. said Wednesday that it has now completed agreements with all its creditors and reached a final settlement with Boeing Co. regarding the impact of the suspension of the Boeing 737-MAX aircraft.

The carrier said that while the details of the final settlement agreement with Boeing are confidential, it reduces Icelandair's MAX purchase commitment by four aircraft.

The parties have agreed to a revised delivery schedule for the remaining six MAX aircraft that are expected to join Icelandair's fleet from 2Q 2021 to 1Q 2022.

Furthermore, the settlement provides additional compensation for Icelandair which covers a substantial portion of the damages incurred from the suspension and will mostly be realized by 2Q 2021, it said.

In addition to the Boeing settlement, Icelandair said agreements on concessions with creditors have been reached.

The airline has been in talks with creditors as part of a wider restructuring that will see a share issue, the conversion of debt to equity as well as government support in the form of a credit guarantee.

Discussions on a term sheet for a credit facility guaranteed by the Icelandic Government and to be provided by Islandsbanki and Landsbankinn are in its final stages, it added.

 

Write to Dominic Chopping at dominic.chopping@wsj.com

 

(END) Dow Jones Newswires

August 12, 2020 04:13 ET (08:13 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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