Company Update - Norwegian Air Shuttle

RNS Number : 4950Q

DP Aircraft I Limited

26 February 2021

 

26 February 2021

DP Aircraft I Limited (the "Company")

Company Update - Norwegian Air Shuttle

The Company is providing this update to its announcement of 24 February regarding the loan arrangements in respect of the two Boeing 787-8 aircraft, LN-LNA and LN-LNB (the "Assets"), leased to Torskefjorden Leasing Limited, part of the Norwegian group ("Norwegian"). As disclosed in that announcement, earlier this week the banks providing loan finance in respect of the Assets (the "NAS Lenders") declared an Event of Default under the relevant loan agreements with the Company's two borrower subsidiaries.

The declaration of an Event of Default means that the NAS Lenders are entitled to enforce rights under the relevant security documents, although at the time of that declaration the NAS Lenders did not confirm to the Company their intended course of action in that regard. The Company has now received notices of security enforcement and loan acceleration from the NAS Lenders; and accordingly, receivers have been appointed in relation to the Assets, the related lease and contract rights, and the shares in the Irish special purpose vehicle which holds title to the Assets. The NAS Lenders will therefore take control of the process of disposing of the Assets, with the proceeds of sale (along with relevant aircraft-specific cash balances, claims against Norwegian and shares in Norwegian held as security) being applied in the first instance to pay off any outstanding amounts owed to the NAS Lenders, and any balance remaining thereafter being remitted to the relevant subsidiaries of the Company.

As previously noted, these developments impact solely upon the Assets; they have no effect upon the Company's arrangements in respect of the aircraft which it leases to Thai Airways; and there is no recourse by the NAS Lenders to the Company itself.

For further information, please contact:

Aztec Financial Services (Guernsey) Limited  [phone]

Laura Dunning / Chris Copperwaite

 

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