Light at the end of the tunnel for airlines?

  • Standstill: Suspending implementation of a creditor’s claims and rights on collateral or security or other property for a particular period of time. This enables the borrower to find a solution to recover.
  • Providing a covenant holiday period to avoid a possible breach of necessary covenants.
  • Deferring loan payment for a particular period of time or providing some other form of debt amortisation.
  • Renegotiating the terms of the credit/lease agreement: Banks may agree to amend some terms of existing agreements, such as by extending loan maturities, reducing interest rates or re-establishing covenants or covenant clean-up periods to remedy the default, in return for a strategic benefit

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Acuity Knowledge Partners

Acuity Knowledge Partners

57 Followers

We write about financial industry trends, the impact of regulatory changes and opinions on industry inflection points. https://www.acuitykp.com/