DP Aircraft I Limited Company Update (1153H)
23 March 2020 - 6:00PM
UK Regulatory
TIDMDPA
RNS Number : 1153H
DP Aircraft I Limited
23 March 2020
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
23 March 2020
DP Aircraft I Limited (the "Company")
Company Update
The Board of Directors of DP Aircraft I Limited announces that,
as a direct result of the unprecedented pressure placed upon the
airline industry in both financial and administrative terms by the
ongoing Covid-19 pandemic, lease payments due on the 13(th) of
March 2020 to the Company from Torskefjorden Leasing Limited, part
of the Norwegian group ("Norwegian") and guaranteed by Norwegian
have not yet been made in respect of either of the two aircraft
(LN-LNA and LN-LNB) which the Company has leased to Norwegian (the
"Assets"). The Board is cognisant that:
(a) the ongoing Covid-19 crisis has placed unprecedented
pressure upon the airline industry in general; and
(b) in the particular case of Norwegian, negotiations are
ongoing between the airline and the Norwegian government for the
provision of state aid and that on 19 March 2020 the Norwegian
government issued a press release indicating its willingness to
extend loan guarantees of up to three billion NOK to Norwegian
subject to certain terms and conditions.
In these circumstances, the Board has opted to reserve its
position under the two leases until there is greater clarity as to
how the negotiations referenced in (b) develop. The Board, and the
Company's asset manager, DS Aviation, will prioritise discussions
with Norwegian in order to determine whether and on what basis it
may be able to meet its obligations to the Company under the leases
for the Assets.
The Board and the Company's asset manager, will also discuss the
situation with Norddeutsche Landesbank Girozentrale, on behalf of
the banks providing lending to the Company and its subsidiaries in
respect of the Assets. The Board will continue to monitor the
situation carefully and will consider all possible courses of
action including, if appropriate, the partial or full suspension of
dividend payments.
In the meantime, the Board remains focused on preserving the
long-term financial stability of the Company. All other lease
payments continue to be forthcoming and on time. The Company has
the benefit of both its own liquidity reserve (currently standing
at over US$6 million) and the three months of security payments
paid by Norwegian under its leases with the Company. The Board has
already taken the precautionary steps of appointing advisers and
implementing preliminary initiatives with a view to protecting the
value of the Assets.
The Board will continue to keep shareholders apprised of
developments, and will make a further announcement at the relevant
time.
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
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contact rns@lseg.com or visit www.rns.com.
END
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