Directors' Report and Financial Statements 31 March ... - Precision Air

PRECISION AIR SERVICES PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2012
* The loan has been approved for construction of hangar project. The loan is secured by
mortgage over hanger property to be constructed at Mwalimu Julius Nyerere International
Airport for entire exposure to the tune of US$ 9,795,000
** The two Stabic Bank loans have been approved for enhancement of existing facilities. The
loan is secured by mortgage over the debentures pledged on the original borrowings.
KCB Limited: Loan -US$ 4,005,000 and Overdraft - US$ 2,000,000
The loan was granted for the purpose of paying off the loan existing at East African
Development Bank Limited (EADB) and is payable over 6 years.
The facilities are secured by Chattels Mortgage over:
- ATR 42 No. 5H PAG to secure entire exposure to the tune of US$ 9,795,000
- Debenture over floating assets to the maximum exposure of US$ 9,795,000
- Assignment over monthly BSP receivables
- Insurance cover with bank’s interest registered
Stanbic Bank Ltd: Loan - US$ 3,180,076 and Overdraft - US$ 4,000,000
The loan was granted for the purpose of purchasing one ATR 72 aircraft.
The facilities are secured by:
- Single debenture dated 2 April 2003 creating a first ranking fixed charge over the
aircraft ATR 42-320 Registration No. 5H-PAA for US$ 4,934,000
- Debenture over floating assets plus aircraft components ,excluding assets specifically
encumbered to other lenders ,registered for US$ 1,424,750
- Comprehensive insurance policy for the full replacement value over all assets which
the bank holds as security with an insurance company approved by the bank where
in the Bank is noted as First Loss Payee.
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DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 31 MARCH 2012