newstodate.aero
Nov 16, 2017 (newstodate): Striving to keep afloat despite a weak financial performance in 2017, the Swedish/UK carrier West Atlantic is seeking fresh investor capital.
Earlier this month West Atlantic announced that it would initiate a written procedure to request its creditors temporarily to waive the Issuers undertaking of the next fulfillment of the Maintenance Test as set out in the Terms and Conditions.
But West Atlantic now says that after feedback from some of its bondholders and ongoing discussions with potential external investors, the Company has decided to postpone such notice to a written procedure until further notice.
The crucial points is surely the hint that talks are now ongoing with potential investors to assist in a refinancing of the company.
During 2017, the company has reported negative results, to a great extent due to high start-up costs caused by delayed deliveries of aircraft for the new Royal Mail contract taking effect from January 1, 2017, which is the company's largest contract ever.
Delivery delays forced West Atlantic to sub-charter aircraft from other airlines, incurring double the cost for many items during the period January-September 2017 as reported in the Q1 and Q2 interim reports.
Consequently, the company did not fulfill the "Maintenance Test" as per September 30, 2017 as stipulated in The Terms and Conditions of the company's corporate bond loan - and has foreseen that it would also not fulfill the next "Maintenance Test" due December 2017.
Earlier this month West Atlantic announced that it would initiate a written procedure to request its creditors temporarily to waive the Issuers undertaking of the next fulfillment of the Maintenance Test as set out in the Terms and Conditions.
But West Atlantic now says that after feedback from some of its bondholders and ongoing discussions with potential external investors, the Company has decided to postpone such notice to a written procedure until further notice.
The crucial points is surely the hint that talks are now ongoing with potential investors to assist in a refinancing of the company.
During 2017, the company has reported negative results, to a great extent due to high start-up costs caused by delayed deliveries of aircraft for the new Royal Mail contract taking effect from January 1, 2017, which is the company's largest contract ever.
Delivery delays forced West Atlantic to sub-charter aircraft from other airlines, incurring double the cost for many items during the period January-September 2017 as reported in the Q1 and Q2 interim reports.
Consequently, the company did not fulfill the "Maintenance Test" as per September 30, 2017 as stipulated in The Terms and Conditions of the company's corporate bond loan - and has foreseen that it would also not fulfill the next "Maintenance Test" due December 2017.