DGAP-Adhoc: Swedish ATP Management AB: Status update - indications that asset value may be lower than expected and that the company may not be able to repay the bond in full at maturity

DGAP-Ad-hoc: Swedish ATP Management AB (publ) / Key word(s): Bond 
Swedish ATP Management AB (publ): Status update - indications that asset 
value may be lower than expected and that the company may not be able to 
repay the bond in full at maturity without calling on the guarantee provided 
by LUSAT AIR S.L. 
 
29-Nov-2019 / 19:00 CET/CEST 
Disclosure of an inside information acc. to Article 17 MAR of the Regulation 
(EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG. 
The issuer is solely responsible for the content of this announcement. 
 
*Disclosure of inside information according to Article 17 of the * 
*EU Market Abuse Regulation No 596/2014* 
 
*PRESS RELEASE* 
 
*Status update - indications that asset value may be lower than expected and 
that the company may not be able to repay the bond in full at maturity 
without calling on the guarantee provided by LUSAT AIR S.L.* 
 
Reference is made to Swedish ATP Management AB (publ) (the "company") SEK 
517,178,250 senior secured callable fixed rate bonds 2019/2022 with ISIN 
SE0012930089 (the "Bond") which are listed on the Frankfurt Open Market. 
 
As part of the restructuring of West Atlantic AB (publ) ("West Atlantic") 
previous bond during the late summer 2019 certain assets (24 ATP Cargo 
aircraft together with spares and stock) were transferred from West Atlantic 
to the company and the company issued the Bonds which were allocated to the 
holders of West Atlantic's previous bond through a mandatory bond exchange. 
Since closing of the restructuring, the company has focused on starting to 
market the aircraft and spares for sale. So far, the company has a few 
possible leads that the company believes are realistic to potentially become 
new clients of the ATP Cargo aircraft. This work is on going. 
 
10 aircraft have as agreed in the restructuring documentation been leased 
back to West Atlantic. Lease agreements for two additional aircraft have 
been entered into but the lease back will not start until the two aircraft 
have been made operational by West Atlantic as agreed in the restructuring 
agreements. The 12 remaining aircraft are parked and there is a plan to make 
them operational and sell them. 
 
Discussion between the company and West Atlantic regarding the two 
additional aircraft to be leased back to West Atlantic once made operational 
have been initiated. The parties are discussing the details of the terms and 
responsibilities for making the airplanes operational under the 
restructuring agreements. 
 
The company has since closing of the restructuring also worked to build an 
understanding of the status of the transferred assets as well as their 
technical condition and has to that end also hired third party expertise. 
The company has concluded information indicating that the value of the 10 
aircraft that are leased back to West Atlantic are likely in line with the 
value communicated in the written procedure in relation to the restructuring 
and other restructuring documentation. With respect to the two additional 
aircraft where the lease back has not started yet, the company is awaiting a 
cost estimate from West Atlantic to make those two aircraft operational. The 
company has also concluded preliminary information that the value of the 12 
parked aircraft is likely lower than as estimated and stated in the written 
procedure and other restructuring documentation, since the cost to make them 
operational and sellable is probably significantly higher than as estimated. 
There are several potential reasons to this, but most significantly that 
components seems to have been removed from the aircrafts over time. 
Further-more, there are uncertainties as regards the value and condition of 
the spare parts and stock transferred from West Atlantic. 
 
The above mentioned issues and uncertainties (and certain others related 
thereto) are now being further investigated and the company has initiated 
contacts with West Atlantic and its new owner LUSAT AIR S.L. (Spain) to 
discuss these issues and a potential solution and/or what actions that 
otherwise should be contemplated. Hopefully such discussions will be 
forthcoming. Depending on the outcome of such investigations and 
discussions, and if the indications that the values of some of the aircraft, 
spare parts and stock are lower than expected and no acceptable solution is 
being presented by West Atlantic, the company need to consider what actions 
to undertake. Furthermore, the preliminary findings indicate that the 
company may not be able to repay the bond in full at maturity, without 
calling on the guarantee given by LUSAT AIR S.L. (Spain). 
 
More information in relation to the status of the company's operations will 
be provided in the company's financial report for the period May 3 - 
September 30, 2019 that will be made available today. 
 
For further information, please contact: 
Stefan Sundberg, CEO 
Telephone: [phone] 
E-mail: [e-mail] 
 
_This information is information that Swedish ATP Management AB (publ) is 
obliged to make public pursuant to the EU Market Abuse Regulation. The 
information was submitted for publication, through the agency of the contact 
person set out above, at 2019-11-29, 19.00 CET._ 
 
*About Swedish ATP Management* 
 
Swedish ATP Management is a newly established asset management company 
dedicated to manage the BAE ATP (Advanced Turboprop aircraft) the most cost 
efficient cargo aircraft in its segment (8 ton in both metric volume and 
payload). We aim to increase ATP operations and utilization through our 
provided services. 
 
Swedish ATP Management AB (publ) Org. no: 559204-4084, Box 5433, SE-402 29 
Gothenburg, Sweden, www.atpcargo.com 
 
29-Nov-2019 CET/CEST The DGAP Distribution Services include Regulatory 
Announcements, Financial/Corporate News and Press Releases. 
Archive at www.dgap.de 
Language:    English 
Company:     Swedish ATP Management AB (publ) 
             Box 5433 
             40229 Göteborg 
             Sweden 
Phone:       [phone] 
E-mail:      [e-mail] 
ISIN:        SE0012930089 
WKN:         A19NPH 
Listed:      Regulated Unofficial Market in Frankfurt 
EQS News ID: 925313 
 
End of Announcement DGAP News Service 
 
925313 29-Nov-2019 CET/CEST 
 
 

(END) Dow Jones Newswires

November 29, 2019 13:00 ET (18:00 GMT)