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UAC to restructure debt with government guarantees, to get EUR600 million fund injection

3-Mar-2010 8:50 AM

United Aircraft Corporation's Board (UAC) met (02-Mar-2010) to consider solutions for the company's financial deficit and approved financial and aircraft production plans for 2010 and for the 2011-2012 period. UAC's debt stands at EUR1.7 billion, with EUR597.5 million to be repaid through Russian Federal Government funds injected into the company in 2010. The remaining EUR1.1 billion will be restructured and repayed with corporate bonds secured by Federal Government guarantees. UAC will receive government guarantees and the state subsidies for 100% of the interest payments on this restructured debt. UAC delivered 95 aircraft to customers in 2009 and plans to deliver 120 aircraft in 2010, increasing by approximately 20% p/a until 2012, by which time it expects to be producing 200 aircraft p/a. [more]