Under the debt arrangements in place between DP Aircraft I Limited and its lending banks, modified terms and conditions for the total loan amount outstanding as at 31 December 2022 have to be negotiated for the period commencing 1 January 2023 until loan maturity in December 2026. The Company has now negotiated revised terms with its lenders, including the postponement of certain principal payments, to align the respective loan agreements with the terms of the amended lease agreements with THAI. In a Second Amendment and Restatement to the Loan Agreement signed on 7 February 2023, the parties agreed on the following main terms: the total loan amount outstanding of USD 97.9 million will be split into two tranches: Tranche 1 of USD 62.4 million (amortizing to a balloon which is dependent on the fixed interest rate and still has to be determined) represents the scheduled debt.

Tranche 2 of USD 35.5 million (non-amortizing) represents the deferred debt. USD 2.36 million of surplus cash generated under the PbH period will be used to repay debt on the amortizing Tranche 1, while an agreed cash reserve of USD 500,000 per aircraft will be retained to cover unforeseen costs going forward. The interest rate swap currently in place for the scheduled debt will be dissolved at no net gain or loss.

Tranche 1 and Tranche 2 will each bear fixed interest rates to establish reliable and transparent payment schedules and to eliminate the risk of increasing interest rates. Further details will be provided once both have been fixed. From the monthly lease rental of USD 510,000/aircraft, USD 35,000 per aircraft will be retained by the Company to contribute to ongoing fixed costs.

Due to the limited liquidity position of the Company, the lenders have refrained at this stage from charging the restructuring fees which are typically associated with the process; instead the lenders will be paid a fee after the eventual remarketing of the aircraft, subject to surplus sales proceeds being realized.