REG - DP Aircraft I Ltd - Company Update

DP Aircraft IAnnouncement

01/04/2022 15:30

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RNS Number : 0204H  DP Aircraft I Limited  01 April 2022

1 April 2022

DP Aircraft I Limited

 

Company Update

Thai Airways

The Board of DP Aircraft I Limited (the "Company") is pleased to advise that
final documentation in relation to the revised Thai lease arrangements for
aircraft TQC and TQD has now been completed and signed. The terms of the new
arrangements reflect those set out in the Letter of Intent signed between the
Company and Thai Airways last year i.e.

-      a Power by the Hour (PBH) arrangement which will remain in place
until the end of 2022

 

-      an extension of the lease term by 3 years to December 2029, with
the Company retaining a right of early termination in December 2026 after
consulting with its lending banks (the "Thai Lenders")

 

-      scaled-back monthly lease payments from 2023 to 2026, reflecting
the reduced rates now seen in the market, with further scaleback in the event
that the lease continues beyond 2026

Income is currently being received by the Company under the PBH arrangement
through the operation of aircraft TQD and aircraft TQC which has also
generated PBH income previously and is expected to be operational again in the
near future following a period out of service to allow for the recent
installation of a replacement engine.

Discussions will be held in due course with the Thai Lenders to determine the
basis upon which loan repayments and interest payments could best be scheduled
to reflect the new lease arrangements.

 

Norwegian Air

As announced last year, the banks providing loan finance in respect of the
Company's two Boeing 787-8 aircraft (LN-LNA and LN-LNB) leased to
Torskefjorden Leasing Limited, part of Norwegian, declared an event of default
under the relevant loan documentation. As a consequence, the assets were
placed into receivership along with the related cash balances and proceeds
from the sale of the Norwegian shares previously received by the Company. The
lenders subsequently sold their interests in the loans and related security,
and the new owner of those interests has now sold the aircraft. As anticipated
and previously provided for, no funds are available for remittance to the
Company following the disposal of the aircraft, and there is no further
recourse against the Company.

 

Proposed fundraising

Given the tight financial constraints within which the Company is currently
operating, the Board intends to consult with its largest shareholders in the
near future to discuss a modest equity fundraising (c.US$0.75m) by way of a
tap issue in order to provide the Company with additional working capital.
Further details of the fundraising will be announced in due course in the
event that the Directors determine to proceed with it. Any investors who wish
to express an interest in participating in the fundraising should contact the
Company's brokers, Investec Bank plc, directly.

 

For further information, please contact:

Aztec Financial Services (Guernsey) Limited                  +44(0)
1481 748833

Sarah Felmingham / Chris Copperwaite

 

Investec Bank
plc
   +44(0) 20 7597 4000

David Yovichic/Denis Flanagan

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