Avation PLC UPDATE ON VIRGIN AUSTRALIA'S ADMINISTRATION (5334X)
01 Septiembre 2020 - 1:00AM
UK Regulatory
TIDMAVAP
RNS Number : 5334X
Avation PLC
31 August 2020
Via RNS and SGXNET
AVATION PLC
("Avation" or "the Company")
UPDATE ON VIRGIN AUSTRALIA'S ADMINISTRATION
Avation PLC (LSE: AVAP), the commercial passenger aircraft
leasing company, provides the following update in respect of Virgin
Australia's Administration.
Deed of Company Arrangement and Expected Return to Creditors
On 25 August 2020, the Administrator released a Report to
Creditors which provides guidance that the expected return to
unsecured creditors will be 9%-13% of the amount owed should the
Deed of Company Arrangement be approved at a creditors' meeting
scheduled for 4 September 2020. Proposed settlement of the majority
of claims is scheduled as being prior to 30 June 2021.
Avation's Exposure to Virgin Australia
Avation had a total of 13 aircraft on lease to Virgin Australia
when it entered Administration. These included six ATR72-500
aircraft, five ATR72-600 aircraft and two Fokker 100 jet aircraft.
Since the commencement of Administration, Avation has entered into
new lease arrangements for five of these aircraft, including
finance leases for the sale of the two Fokker 100 aircraft,
operating leases for two ATR 72-500s with a new airline customer in
Australia and a five year operating lease for an ATR72-500 aircraft
with a new airline customer in Asia.
The three remaining ATR72-500s have been returned to Avation and
are now undergoing maintenance in anticipation of being
transitioned. The Administrator has also commenced the return of
the five ATR72-600 aircraft. Avation is now seeking to reposition
or sell eight ATR72 aircraft. The total secured debt outstanding
against these eight aircraft amounts to US$30.7 million.
The majority of the Company's claim against Virgin Australia is
made up of outstanding rent and lease end return maintenance
compensation. At the date Virgin Australia entered Administration,
its future outstanding rent totalled US$48.4 million. The Avation
preliminary proof of debt claim against Virgin Australia amounts to
US$74.7 million.
Jeff Chatfield, Executive Chairman of Avation, said: "Avation is
fortunate that the leases to Virgin Australia were mature with a
range of only 1-3 years remaining duration on each lease. The
unearned contracted revenue associated with Virgin Australia
represented less than 6% of Avation's total unearned contracted
lease revenue across all customers as at the date of the
Administration. The relatively low levels of debt associated with
the returned aircraft will be further reduced by the expected
payment to Virgin Australia's creditors following the proposed DOCA
approval.
"Avation's opinion is that regional aviation will recover the
first after the pandemic. ATR72 aircraft are amongst the lowest
cost commercial passenger aircraft to operate, on a per seat-km
basis, and are well suited to regional routes which may present
opportunities for other airline operators as well as those in
Australia planning to fill the void left by Virgin. Avation is
considering a variety of alternatives to redeploy these aircraft
with different operators around the world."
ENDS -
Enquiries:
Avation PLC - Jeff Chatfield, Executive Chairman +65 6252 2077
Avation welcomes shareholder questions and comments which may be
sent to the email address: investor@avation.net
Notes to Editors:
Avation PLC is an aircraft leasing company headquartered in
Singapore which owns and manages a fleet of commercial passenger
aircraft leased to airlines around the world.
More information on Avation is available at www.avation.net
.
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