28-Jan-2010 9:32 AM

Aveos reaches agreement on recapitalisation plan

Aveos Fleet Performance reached (27-Jan-2010) an agreement in principle with its lenders to reduce its outstanding debt and "create an appropriate capital structure to support the company’s long-term strategic plan and business objectives". Aveos’ first and second lien debt will be reduced from approximately USD800 million to USD75 million. In addition, certain of the lenders will provide a new working capital facility of USD75 million. As part of the transaction, Aveos’ lenders have agreed to convert their remaining debt into equity and Air Canada will hold a minority stake. Aeroman, the Aveos affiliate in El Salvador, will not be affected by the restructuring. [more]