DP Aircraft I Limited Company Update -- Thai Airways (8423Q)
02 March 2021 - 8:25PM
UK Regulatory
TIDMDPA
RNS Number : 8423Q
DP Aircraft I Limited
02 March 2021
2 March 2021
DP Aircraft I Limited (the "Company")
Company Update - Thai Airways
Further to its announcement of 24 January, the Company is now
able to provide an indicative update on its revised arrangements
with Thai Airways in respect of the two Boeing 787-8 aircraft
leased to Thai (the "Thai Assets"), and the corresponding agreement
reached with the lending banks (the "Thai Lenders") providing loan
finance in respect of the Thai Assets.
Lease Arrangements
The Company has today signed a Letter of Intent with Thai
Airways under which the parties have agreed to amend the existing
lease terms. The new terms provide for a 'power by the hour' (PBH)
arrangement until the end of next year (i.e. rent will be payable
by reference to actual monthly utilisation of the Thai Assets),
with scaled back monthly lease payments thereafter, reflecting the
reduced rates now seen in the market. The lease term will be
extended from October 2026 to December 2029, with the Company
retaining a right of early termination in October 2026. Thai
Airways has also undertaken to ensure that the Thai Assets are
airworthy and in flight ready condition in all respects by 30 June
2021, and on an ongoing basis.
Loan Arrangements
The Company and the Thai Lenders have agreed to amend and
restate the existing loan facility agreements in respect of the
Thai Assets, to accommodate the new lease arrangements described
above. Repayments of principal will be deferred until the end of
the PBH arrangement; and the Company and the Thai Lenders will
enter into discussions at that time to determine how best to
schedule interest payments, principal repayments and a final
balloon repayment, having regard for both the income being received
by the Company in respect of the Thai Assets, and the running costs
of the Company and its subsidiaries.
As announced last week, the lending banks in relation to the
Company's two aircraft leased to the Norwegian group have declared
an event of default and enforced their security rights in respect
of those assets. This, coupled with the fact that any lease rental
payments received by the Company in respect of the Thai Assets are
expected to be applied exclusively towards the running costs of the
Company and its subsidiaries, and interest payments and principal
repayments to the Thai Lenders, means that there is no realistic
prospect of the Company's shareholders receiving a dividend or
other distribution for the foreseeable future. The Board and its
advisers will be consulting with shareholders in the coming days
with a view to determining the best course of action to take for
the future of the Company.
For further information, please contact:
Aztec Financial Services (Guernsey) Limited +44(0) 1481 748833
Laura Dunning / Chris Copperwaite
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