General Announcement::PHILIPPINE AIRLINES EXITS BANKRUPTCY

Issuer & Securities

Issuer/ Manager
AVATION CAPITAL S.A.
Securities
AVATIONCAP US$300M6.5%210515A - US05351CAA53 - 8ULB
AVATIONCAP US$300M6.5%210515R - USL56473AA67 - 8UMB
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
04-Jan-2022 23:42:03
Status
New
Announcement Sub Title
PHILIPPINE AIRLINES EXITS BANKRUPTCY
Announcement Reference
SG220104OTHRNNM6
Submitted By (Co./ Ind. Name)
Duncan Scott
Designation
Group General Counsel
Description (Please provide a detailed description of the event in the box below)
Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company, advises that its customer Philippine Airlines Ltd ("PAL") has exited bankruptcy and has received court approval for its restructuring plan which was effective 31 December 2021.

Pursuant to an agreement with Avation, PAL has retained a Boeing 777-300ER aircraft on lease from Avation in accordance with the restructuring plan.

Under the terms of the restructuring Avation has been collecting monthly rent on the aircraft based on hourly rates of utilisation in the period from September 2021. PAL is up to date with these payments. Avation is also entitled to receive a cash payment, in or around January 2022, relating to utilisation for the period of 1 September 2020 to 3 September 2021 along with a promissory note for 25% of the aggregate rent outstanding for the period prior to 1 September 2020.

The lease will continue to until the original scheduled termination date, from 1 March 2022 the lease payments will revert to a fixed market rate rent along with cash maintenance reserves.

Avation's Executive Chairman, Jeff Chatfield said: "The restructuring of Philippine Airlines Ltd is a significantly recovery and positive development for our investment in a Boeing 777-300ER aircraft."

ENDS -



Enquiries:

Avation PLC - Jeff Chatfield, Executive Chairman +65 6252 2077

Avation welcomes shareholder questions and comments and advises the email address is: investor@avation.net

Notes to Editors:

Avation PLC is an aircraft leasing company, headquartered in Singapore, owning and managing a fleet of commercial passenger aircraft which it leases to airlines around the world. More information on Avation is available at www.avation.net.