Comment On Air Baltic Initiating Chapter 11

In brief · summary, not quotable

Avation PLC has commented on airBaltic's voluntary initiation of a U.S. Chapter 11 process to restructure its financial obligations, noting that airBaltic will continue operations as scheduled and has secured EUR 350 million in debtor-in-possession financing. Avation understands that airBaltic intends to honor its lease obligations and continue paying rent and maintenance reserves in the ordinary course of business for its four Airbus A220 aircraft, with leases due to expire in 2030 and 2031. Avation plans to join other lessors to support an efficient engagement and does not anticipate any short-term material financial impact from this restructuring.

Full announcement

Select text to share a quote on X · sign in to keep highlights & notes in your AVAP notes

Avation PLC (LSE: AVAP, Avation or "the Company"), the commercial passenger aircraft leasing company provides the following commentary in relation to the voluntary initiation by Air Baltic Corporation AS ("airBaltic") of a U.S. Chapter 11 process to restructure its financial obligations while continuing its operations:

airBaltic has announced that it is operating all flights as scheduled and the airline's business will continue as usual;
it has further announced that it has raised EUR 350 million in debtor-in-possession (DIP) financing to assist with its immediate liquidity needs; and
the Company understands that the airline intends to honor its obligations under its leases with the Company and continue to pay all rents and maintenance reserves in the ordinary course of business.

Avation currently has four Airbus A220 aircraft on lease to airBaltic with leases scheduled to expire in 2030 and 2031.

Avation plans to join with an ad hoc group of certain other lessors to airBaltic, represented by a financial adviser, to support an efficient engagement at minimum cost. Avation does not expect any short-term material financial impact on business as a consequence of airBaltic's restructuring.

Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.