(Bloomberg) -- Creditors of Nordic Aviation Capital AS are one step closer to taking control of the company, one of the world’s largest aircraft lessors. 

Nordic Aviation and its biggest creditor groups have reached an agreement on the outline terms of the company’s restructuring framework, according to a statement on Friday.

The deal, in principle, includes the conversion of “a substantial amount of the group’s debt into equity,” a $300 million equity rights offering and a $200 million revolving credit facility. Major company shareholders -- Singapore’s sovereign fund GIC and private equity firm EQT Partners -- said in March they wouldn’t contribute further to support the business after injecting $60 million in 2020. 

Read more: Nordic Aviation Lenders Seek Exit Ahead of Debt Freeze Deadline

Travel restrictions imposed across the globe to curb Covid-19 have severely impacted Nordic Aviation’s leasing and lease-management businesses. The company reported  a loss of $2.36 billion for the fiscal year ending June 30, according to the statement. 

The aircraft lessor also reported a strong pick-up in placement activity during summer, including reporting 14 deliveries across all regions, improving on 2019 figures by over 50%. Lease extensions have increased 45% year-to-date compared to the same period in 2019.

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