Avation PLC PHILIPPINE AIRLINES RESTRUCTURING (8061K)
September 06 2021 - 1:00AM
UK Regulatory
TIDMAVAP
RNS Number : 8061K
Avation PLC
06 September 2021
Via RNS and SGXNET
AVATION PLC
("Avation" or "the Company")
PHILIPPINE AIRLINES RESTRUCTURING
Avation PLC (LSE: AVAP), the commercial passenger aircraft
leasing company, advises that its customer Philippine Airlines
("PAL") has filed a voluntary petition for relief under Chapter 11
of the United States Bankruptcy Code in order to complete a
prearranged restructuring process. Avation and PAL have agreed
terms for PAL to retain the use of a Boeing 777-300ER aircraft on
lease from Avation.
PAL have advised that sufficient creditors, including Avation,
have agreed to support the restructuring and the airline has a high
level of confidence that the process will be completed
successfully. A successful restructuring will ensure that Avation's
aircraft will remain with PAL and that Avation will recommence
collecting cash rent on the aircraft for the first time since
mid-2020. Under the restructuring, Avation will also be entitled to
receive payments relating to utilisation since 1 September 2020 on
a power by the hour basis and a promissory note for a portion of
rent outstanding for the period prior to 1 September 2020. The
Company believes that this is a positive outcome given the current
market environment for twin-aisle aircraft. The outcome is that the
lease will continue to its original scheduled termination,
following an initial period on a power by the hour basis the lease
will revert to current market rate fixed rents and maintenance
reserves.
Avation's Executive Chairman, Jeff Chatfield said: "A successful
restructuring outcome for Philippine Airlines would amount to
significant step forward to provide Avation with certainty on lease
duration in respect of its Boeing 777-300ER. A successful
restructuring returns this aircraft to revenue generation and
ensures rent collection which is a positive outcome for
Avation."
-ENDS -
Enquiries:
Avation PLC - Jeff Chatfield, Executive Chairman +65 6252 2077
Avation welcomes shareholder questions and comments and advises
the email address is: investor@avation.net
Notes to Editors:
Avation PLC is an aircraft leasing company, headquartered in
Singapore, owning and managing a fleet of commercial passenger
aircraft which it leases to airlines around the world. More
information on Avation is available at www.avation.net .
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END
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