Terms of debt restructuring satisfied only Sberbank
Unfortunately for Utair air carrier, the creditors syndicate did not approve the terms of its debt restructuring. Therefore, the company’s management should expect write-offs. This may mean that the firm will not be able to pay airports.
It is known that Utair company in 2015 borrowed 18.9 billion rubles. In December 2018, the fourth largest air carrier of Russia announced the restructuring and suspended the payment of funds for obligations.
Utair offered creditors to wait until the summer of 2019. But not everyone liked the idea. Among the members of the syndicate, which provided funds to the carrier, 11 Russian banks. Only Sberbank reacted with understanding to the difficulties of the company Utair. It should be noted that this financial institution accounts for only 21% of the loan. The largest amount of funds contributed Trust (32%). Russia expects repayment of the loan in the stipulated time frame (23.6 per cent).
In 2018, the airline served almost 8 million passengers. The company has 50 main Boeings and 15 regional ATR 72. Among the shareholders – Surgutneftegas (controlling stake), as well as Khanty-Mansiysk JSC and Tyumen region.
Terms of debt restructuring: withdraw funds from the accounts
The head of Utair Andrey Martirosov told the Federal Air Transport Agency, what could happen to the industry, if the company will take debts forcibly. In particular, the company will not have the funds to perform its direct duties –passenger transportation. Without funds, the company will cease to serve at airports.
It is noted that the carrier had in free circulation about 807 million rubles. It is possible that this amount decreased by 10% due to the increased cost of aviation fuel. As you can see, all the debt creditors can not pick up in any case, but to completely paralyze the activities of the airline.
Direct debit is provided for in the contract between the carrier and creditors, and banks can start it at any time. But practice shows that creditors resort to such methods after 3 months of absence of payments. Without money, the syndicate is also able to start lawsuits that threaten to drag on for a long time.
The creditor may file a bankruptcy petition against the defaulting company. By the way, the loan of 18.9 billion rubles is not the only one for the company. 11 Russian banks also issued the second tranche of 24.1 billion to Utair. Payments on it will last for 12 years and has so far been carried out regularly by the air carrier. 38.66 billion rubles in total, the company owes banks and previously planned that Utair will fully pay off its debts by 2027.