Dp Aircraft I Regulatory News (DPA)

2 March 2021

DP Aircraft I Limited (the "Company")

Company Update - Thai Airways

Further to its announcement of 24 January, the Company is now able to provide an indicative update on its revised arrangements with Thai Airways in respect of the two Boeing 787-8 aircraft leased to Thai (the "Thai Assets"), and the corresponding agreement reached with the lending banks (the "Thai Lenders") providing loan finance in respect of the Thai Assets.

Lease Arrangements

The Company has today signed a Letter of Intent with Thai Airways under which the parties have agreed to amend the existing lease terms. The new terms provide for a 'power by the hour' (PBH) arrangement until the end of next year (i.e. rent will be payable by reference to actual monthly utilisation of the Thai Assets), with scaled back monthly lease payments thereafter, reflecting the reduced rates now seen in the market. The lease term will be extended from October 2026 to December 2029, with the Company retaining a right of early termination in October 2026. Thai Airways has also undertaken to ensure that the Thai Assets are airworthy and in flight ready condition in all respects by 30 June 2021, and on an ongoing basis.

Loan Arrangements

The Company and the Thai Lenders have agreed to amend and restate the existing loan facility agreements in respect of the Thai Assets, to accommodate the new lease arrangements described above. Repayments of principal will be deferred until the end of the PBH arrangement; and the Company and the Thai Lenders will enter into discussions at that time to determine how best to schedule interest payments, principal repayments and a final balloon repayment, having regard for both the income being received by the Company in respect of the Thai Assets, and the running costs of the Company and its subsidiaries.

As announced last week, the lending banks in relation to the Company's two aircraft leased to the Norwegian group have declared an event of default and enforced their security rights in respect of those assets. This, coupled with the fact that any lease rental payments received by the Company in respect of the Thai Assets are expected to be applied exclusively towards the running costs of the Company and its subsidiaries, and interest payments and principal repayments to the Thai Lenders, means that there is no realistic prospect of the Company's shareholders receiving a dividend or other distribution for the foreseeable future. The Board and its advisers will be consulting with shareholders in the coming days with a view to determining the best course of action to take for the future of the Company.

For further information, please contact:

Aztec Financial Services (Guernsey) Limited +44(0) 1481 748833

Laura Dunning / Chris Copperwaite