Icelandair Reaches Deal With Creditors, Reduced Boeing MAX Aircraft Order
August 12 2020 - 4:28AM
Dow Jones News
By Dominic Chopping
Icelandair Group Hf. said Wednesday that it has now completed
agreements with all its creditors and reached a final settlement
with Boeing Co. regarding the impact of the suspension of the
Boeing 737-MAX aircraft.
The carrier said that while the details of the final settlement
agreement with Boeing are confidential, it reduces Icelandair's MAX
purchase commitment by four aircraft.
The parties have agreed to a revised delivery schedule for the
remaining six MAX aircraft that are expected to join Icelandair's
fleet from 2Q 2021 to 1Q 2022.
Furthermore, the settlement provides additional compensation for
Icelandair which covers a substantial portion of the damages
incurred from the suspension and will mostly be realized by 2Q
2021, it said.
In addition to the Boeing settlement, Icelandair said agreements
on concessions with creditors have been reached.
The airline has been in talks with creditors as part of a wider
restructuring that will see a share issue, the conversion of debt
to equity as well as government support in the form of a credit
guarantee.
Discussions on a term sheet for a credit facility guaranteed by
the Icelandic Government and to be provided by Islandsbanki and
Landsbankinn are in its final stages, it added.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
August 12, 2020 04:13 ET (08:13 GMT)
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