Avation PLC (LSE:AVAP) said it has entered into a formal payment plan agreement with an airline client to repay almost US$26mln in leasing charges held over during the pandemic.
This PPA replaces a series of ad hoc arrangements with the airline during the pandemic period, said the civil jet lessor, with full contracted rental amounts to resume from July 2022.
Arrears will be recovered as an amortizing loan in aggregate of US$25.9mln, repayable from January 2023 over 24 months with an interest rate of 5.5% a year.
Jeff Chatfield, Avation’s executive chairman, said: "This is the final material amount from any Covid-19 associated repayment programme with airlines, and the company is pleased to have reached agreement between the bankers and the concerned airline.
“The repayment of the loan will represent a full recovery of rents due under our leases with the airline."