IN BRIEF: Avation signs payment plan to recover rent from client

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Avation PLC - Singapore-based passenger aircraft leasing company - Enters into formal payment plan agreement with unnamed airline client for the client to repay sums advanced to it during the pandemic. Agreement replaces ad hoc arrangements with the client during the pandemic, and the client will return to full contracted rental amounts from July. Recovers arrears as amortising loan of $25.9 million, repayable from January of next year, with an interest rate of 5.5% a year for a period of 24 months.

‘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,’ says Executive Chair Jeff Chatfield.

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