Utair secures new loan as it strives to emerge from debt pressure

Russian operator Utair Aviation has reached a loan agreement with Rossiya Bank for Rb12b ($164m) as part of the company’s financial restructuring. Utair says the terms of the 12-year loan include a “grace period” for payment of the principal and interest. It adds that the two sides aim to settle repayment terms for previous loans by the end of October, continuing the carrier’s effort to optimise its debt situation. Utair Aviation is Russia’s fourth-largest operator, with a fleet of some 400 aircraft and helicopters, and is core to its parent Utair Group. Over the first six months of this year Utair Aviation turned in a small net profit of Rb626m, in contrast to the previous interim loss of Rb5.8b. But the company remained in a poor financial position at the half-year point, with negative net assets to the amount of Rb24.2 billion – only a slight reduction on the figure at the end of 2020. Its current liabilities exceeded its current assets by Rb45.6b, according to its half-year financial statement to 30 June 2021, filed under international standards.<br/>