DP Aircraft I Limited Company Update -- Norwegian Air Shuttle (2435Q)
February 24 2021 - 9:28AM
UK Regulatory
TIDMDPA
RNS Number : 2435Q
DP Aircraft I Limited
24 February 2021
24 February 2021
DP Aircraft I Limited (the "Company")
Company Update - Norwegian Air Shuttle
Further to the previous announcements made by the Company
regarding ongoing negotiations with both lessees and lending banks,
the Board of DP Aircraft I Limited is providing the following
update in relation to the two Boeing 787-8 aircraft, LN-LNA and
LN-LNB (the "Assets"), leased to Torskefjorden Leasing Limited,
part of the Norwegian group ("Norwegian").
As previously advised, the pressure placed upon the aviation
industry by the Covid crisis led to Norwegian defaulting last year
on its lease payments to the Company in respect of the Assets.
Following protracted discussions, the Company agreed new terms in
principle with the banks providing loan finance in respect of the
Assets (the "NAS Lenders"), and a revised set of lease terms was
signed between the Company and Norwegian. Norwegian subsequently
announced in January of this year that it was ending its long-haul
operations, as a result of which it would no longer have need of
the Assets; and it is now in the process of implementing a
restructuring plan in an effort to secure further financial support
from the Norwegian Government.
The Company, with the advice and assistance of its asset manager
DS Aviation GmbH & Co. KG, has been working for a number of
months on a plan to position the Assets in a ferry-ready state by
October of this year in anticipation that the Assets will need to
be re-marketed; and as part of that process, dialogue has continued
with the NAS Lenders with a view to securing the necessary
financial latitude to allow that plan to come to fruition. The NAS
Lenders have however now declared an Event of Default under their
loan agreements with the Company's two borrower subsidiaries. This
means that the NAS Lenders are entitled to enforce rights under the
relevant security documents and take control of the Assets and the
recoveries from the Assets, although the course of action has not
yet been determined.
The calling of an Event of Default by the NAS Lenders impacts
only the lending arrangements in respect of the Assets, which are
structured and effected through two wholly-owned subsidiaries of
the Company. It has no effect upon the Company's arrangements in
respect of the aircraft which it leases to Thai Airways; and there
is no recourse by the NAS Lenders to the Company itself. If the NAS
Lenders enforce their rights under the relevant security documents,
they will therefore take control of the process of disposing of the
Assets, with the proceeds of sale (along with relevant
aircraft-specific cash balances, claims against Norwegian and
shares in Norwegian held as security) being applied in the first
instance to pay off any outstanding amounts owed to the NAS
Lenders, with any balance remaining thereafter remitted to the
relevant subsidiaries of the Company.
The Company remains in the process of finalising a new set of
lease arrangements with Thai Airways and the lending banks in
connection therewith, and will provide an update on progress made
on that front in due course.
For further information, please contact:
Aztec Financial Services (Guernsey) Limited +44(0) 1481 748833
Laura Dunning / Chris Copperwaite
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDEZLFLFLLLBBE
(END) Dow Jones Newswires
February 24, 2021 10:28 ET (15:28 GMT)
Dp Aircraft I (LSE:DPA)
Historical Stock Chart
From Apr 2024 to May 2024
Dp Aircraft I (LSE:DPA)
Historical Stock Chart
From May 2023 to May 2024