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

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