West Atlantic seeks bondholder waivers for missing maintenance test

By Susanna Moon

Chicago, Nov. 7 – West Atlantic AB is asking bondholders for waivers by way of written procedure for failure to meet a “maintenance test” by Sept. 30.

Pareto Securities is the financial adviser.

The issuer “has reported negative financial results during 2017” in its interim results for the second quarter of 2017, according to a company announcement.

In an aim to reach the expected level of service under the Royal Mail contract, the group entered into lease agreements for new Boeing 737 cargo aircraft but failed to get the needed configuration conversions in time, the company explained.

What’s more, the group's profitability was further hurt by extended stoppages for planned technical maintenance work for the group's Boeing 767 fleet.

West Atlantic said it is “closely monitoring the group's liquidity and equity situation” and reviewing its business plans as well as the options for recapitalization such as equity injections.

“In the meantime, work has continued on the group's cost reduction program which comprises, inter alia, a consolidation of the group's maintenance facilities and general slim-lining of the organization, while at the same time ensuring that the group continues to fulfill and exceed regulatory requirements and customer expectations in terms of safety and reliability,” the release added.

The initiatives include closures of the group's hangars in Malmo and Coventry, the sale of at least two aircraft as well as performing more maintenance controls in-house and consolidating facilities, the issuer said.

West Atlantic Group is a Gothenburg, Sweden-based provider of European air freight services.

© 2015 Prospect News.
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