Aircraft repair company Magnetic MRO applying for large state loan

Magnetic MRO working on aircraft repairs at Tallinn Airport. Photo is illustrative.
Magnetic MRO working on aircraft repairs at Tallinn Airport. Photo is illustrative. Source: Igor Pisarev/Estonian Aviation Cluster

The aircraft repair company Magnetic MRO is applying for a loan from the state through KredEx and is waiting for a decision from the government. It will be the third large company after Tallink and Alexela to apply for a state loan.

ERR does not know the exact figure the firm is asking for but belives it will be smaller than Tallink and Alexela's loans. The government has approved loan applications of €100 million from Tallink and €37 million from Alexela. 

As Magnetic MRO is a listed company, CEO Risto Mäeots did not want to give any details about the loan amount but admitted they had applied for a state loan.

"As we are a company listed on the Tallinn Stock Exchange and we have obligations to investors, we may not share unofficial information before the official stock exchange announcement. We have applied to KredEx for assistance, but all more detailed information will appear in the official stock exchange announcement," he said in a written reply. 

"The goal is the same - to emerge from this situation as a sustainable and still high value-added company. We have timed our activities so that by the end of the third quarter of this year, we have signed solid solutions and can focus on realizing our longer vision."

All state aid and loan applications over €10 million must be approved by the government. As the Magnetic MRO application is also awaiting a government decision, the amount must be at least €10 million.


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Editor: Helen Wright

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