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: +46 70 558 58 65
E-mail: stefan@atpcargo.com
_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: +46 70 558 58 65
E-mail: stefan@apcargo.com
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)
