Amedeo Air Four Plus Share Discussion Threads

[fram7] 23/9/2020 14:38

well. These days an investment returning money can only be a good news and definitely is. But they are paying each share 46p which although much higher than todays price is way lower than pre covid prices around 75p. lets' hope they will manage to keep paying good dividends. I am delighted with 1.15p (12% a year!) and I am sure eventually the share price will go back to normal levels.

[irishmatt] 23/9/2020 13:48

Very interesting RNS, glad they are returning majority of the cash from the sale and this seems like a decent way of doing it

[adae] 24/7/2020 07:07

Seems like a positive:

"For the sake of clarity the Board confirms that it will not be declaring a dividend for payment in July but is hopeful that the payment of quarterly dividends will recommence in late October and quarterly thereafter and a further announcement in this regard, stating the applicable rate of dividend per share, may be expected mid-October or earlier."

[adae] 22/7/2020 16:20

Long leases point is a good one - things could look very different in say a year's time. A lot to work through first though.

[fram7] 29/6/2020 10:36

All airlines planes are worth about 0 now. Amedeo has long leases so problems, if any, will have to be evaluated then.
Who knows, may be the A380 will become popular again! It is still a modern, comfortable and safe plane with the lowest cost and pollution per passenger (when full).

Are you old enough to remember when they told us oil was going to finish soon and will never go under £100 a barrel? 2 weeks ago a financial consultant called me to and recommended me buying Wirecard shares.....

Lets keep it real!

[sf5] 28/6/2020 18:18

Nothing very new here, other than statements that A380 training has stopped with some carriers
I find it hard to imagine there will be any used airframe demand when leases expire and operators will have a huge choice for spares. The July annual financial reports will be read with interest!

[my retirement fund] 18/6/2020 00:40

2/3 of the world's aeroplanes in the Western world are still sat idle. So thats 2/3 of aircrew maintenance and support staff idle. All the inputs costs associated from fuel to interest on finance frozen too. Yet I am paying more to import goods by air from China because of a total lack of serviceable planes! THE WORLD HAS GONE MAD !!!

[fram7] 17/6/2020 22:55

Amedeo up again another 6%......

[fram7] 08/6/2020 15:13

Today Amedeo up 6.25%....going the right direction.....Still a massive bargain if things will end up well.

[adae] 08/6/2020 14:15

Sounded optimistic on future divis but just can't decide how big a hole the airline industry - and the plane leasing co's - are in. AA4 does at least have cash sitting around, albeit that the debt secured against the aircraft is massive.

Seemed an honest update.

[fram7] 08/6/2020 13:29

good stuff!

Clearly more time is needed but the situation does not look desperate.

Thai will not do anything till August but it is clear to me they will either need to agree payments or return the planes paying a very hefty fee (I believe around $70 mill per plane). they are owned by the Government so I would expect a cash injection.

Emirates is fully backed by the Government. As any airline they will restructure their fleet but I do not expect them to return younger planes.

If the air travel market is normalising I see limited scope for long term payment holidays from lease companies.

I see a very strong pick up in air travel demand so things are looking positive.

Good luck to us.

FM

[davebowler] 08/6/2020 11:58

Liberum;
Portfolio update highlights complexity of lessee situation

Mkt Cap £206m | Prem/(disc) -70.5% | Div yield n/a

Event

Amedeo Air Four Plus has released a portfolio update for the period to 1 June 2020. Much of the detail has been published previously, although there is a number of key updates:

Distributions were suspended in March following a request for support from Thai Airways (AA4 leases 4 A350s to Thai). In May AA4 reached an agreement in principal with Thai Airways for a partial deferral of lease payments for six months, with the deferred amounts due to be paid over the following three years. Thai Airways subsequently submitted to the Central Bankruptcy Court of Thailand its petition to file for rehabilitation citing a total debt amount of c.£9 billion. The court has accepted the petition and the first hearing will take place on 17 August 2020. This has resulted in an automatic stay coming into effect which restricts Thai Airways' right to pay and incur debts. Thai has not paid any lease payments to AA4 since 22 May 2020. The manager is in discussions with Thai Airways and the secured lenders of the four aircraft. It is likely the situation with regards to the payments will not not become clear until closer to the August hearing.

During April, Emirates also requested financial accommodation from the company (AA4 lease 6 A380s and 2 B777s to Emirates). Discussions with Emirates and the different lender groups are ongoing. Importantly, Emirates remains up to date with its lease payments and intends to do so until an agreement has been reached. The situation with the lenders is complex as some are participating in providing direct liquidity facilities to Emirates and would not contemplate additional assistance in structured transactions. Dubai's government has promised an injection of equity into the airline considering its strategic importance to the region.

The board will seek to re-assess whether distributions can be resumed (including the sale proceeds from the two Etihad aircraft) once it has greater clarity on its prospective financial position.

The board is seeking to reduce costs and has sought a proposal from Nimrod Capital for a substantial reduction in the fixed fees and aligning these to the market cap. The board states that the proposal from Nimrod Capital did not meet this objective and contained conditions that would restrict the board's ability to manager the company effectively.

Liberum view

The situation with both lessees is unlikely to be resolved soon and distributions remain some way off. The company holds a significant amount of cash on the balance sheet. At 30 September 2019, Amedeo Air Four Plus had £110.8m of cash on the balance sheet, reducing to £49.3m after stripping out security deposits and maintenance reserves. The continuation of the Emirates lease payments and the suspension of dividends should also have ensured that the cash position has not materially weakened since September. Since then the company has received net proceeds of £130m from the sale of two A380s to Etihad. The free cash of £179m is equivalent to 29p per share

[fram7] 03/6/2020 12:17

Today Amedeo going up!!! not much but better than nothing. is this the start of a new trend?

[fram7] 02/6/2020 17:09

BTW if you are trying to book a flight for you summer holidays you will be lucky to get something in August......everything already booked......against all news reports people have clearly no fear to flight....hopefully they will reinstate A380 soon because I would like to go on holiday on a plane!

[robizm] 29/5/2020 16:23

Not good news glad I took a small loss last week.

[fram7] 22/5/2020 15:44

Air France is retiring "only" 9 A380 and they were due to retire in 2 years anyway so no big news. what is a surprise to me is that they declare a book value of only 55 mill per plane.
What is going on in the aviation industry is incredible. None of the planes have any value right now! it's like being paid to purchase oil!
Lets keep it real! They told us coronavirus was just a flu....in the 70s they told oil prices will never go down and humanity will face a shortage of oil. The top consulting firms and aviation experts told us the future of aviation was the A380.....
Eventually flying will become normal again and while many airlines will decide not to use the A380 (something that has been decided before the coronavirus crisis) some might since the A380 is still a young and modern plane with an excellent safety record. We have to remember that the A380 is still the most profitable plane on the market ...if fully loaded...
This discussion is about AMEDEO but clearly this investment is linked to the value of the A380. Amedeo has a portfolio of six A380, two B777-300ER and four A350-900 aircraft.
Although aircrafts valuation will be down massively the current Amedeo price at 26 is a panic price. If nothing improves Amedeo will default but they have plenty of cash to survive for many month. Let's hope air travelling will normalise and Amedeo share price will go up. The asset manager behind Amedeo will do anything to keep this business afloat. I know they have very good contacts in the industry so they might even get some good deals out of this crisis. At least lets hope so.

Nice to read:
hxxps://citywire.co.uk/investment-trust-insider/news/airbus-a380-closure-positive-claim-high-yield-plane-funds/a1201505

[buoycat] 22/5/2020 13:28

Not looking good for the A380. Air France grounding its entire 240 strong fleet. BA grounded 12. Emirates according to today's Times considering grounding its 115 A380s.

[fram7] 21/5/2020 10:44

than someone must have bought 20 million!

[robizm] 20/5/2020 22:33

Someone sold 20 million shares today

[robizm] 19/5/2020 22:11

Wonder if that Rns will affect the price on Wednesday

[fram7] 19/5/2020 12:33

yes, Thai is bankrupt. At least the Amedeo leases are A350s. I suppose Thai might eventually want to keep them and so pay for them? They will stop paying for older planes?
Clearly there is no secondary market for A350s at present but things might change in few months? Aibus will not massivly discount new planes so nearly new ones might be a good deal

[robizm] 19/5/2020 11:51

It looks like Thai airways in trouble according to ft