Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company, advises that its customer Philippine Airlines Ltd ("PAL") has exited bankruptcy and has received court approval for its restructuring plan which was effective 31 December 2021.

Pursuant to an agreement with Avation, PAL has retained a Boeing 777-300ER aircraft on lease from Avation in accordance with the restructuring plan.

Under the terms of the restructuring Avation has been collecting monthly rent on the aircraft based on hourly rates of utilisation in the period from September 2021. PAL is up to date with these payments. Avation is also entitled to receive a cash payment, in or around January 2022, relating to utilisation for the period of 1 September 2020 to 3 September 2021 along with a promissory note for 25% of the aggregate rent outstanding for the period prior to 1 September 2020.

The lease will continue to until the original scheduled termination date, from 1 March 2022 the lease payments will revert to a fixed market rate rent along with cash maintenance reserves. Avation's Executive Chairman, Jeff Chatfield said: "The restructuring of Philippine Airlines Ltd is a significantly recovery and positive development for our investment in a Boeing 777-300ER aircraft."