Worldwide legislation agency Clifford Probability has suggested Nordic Aviation Capital (NAC), the world’s largest regional plane lessor, on the profitable restructuring of roughly $6bn of its secured and unsecured debt. While NAC entered the present world disaster in a robust liquidity place, the ensuing fall-out within the aviation sector has prompted important misery. This restructuring goals to offer NAC with a secure platform while the aviation market recovers by deferring sure funds of principal and curiosity. It additionally waives quite a lot of covenants that seemingly would in any other case have been breached because of the present market misery. These phrases have been in the end overwhelmingly supported by NAC’s monetary collectors.
This restructuring was carried out utilizing a solvent Irish scheme of association, along with sure bilateral preparations, and contained quite a lot of revolutionary facets designed by Clifford Probability. Specifically, the scheme relied on the existence of a typical guarantor throughout the affected financings with the intention to act as a single level of entry, with aid underneath the scheme phrases then prolonged to every main NAC debtor underneath the related financings. This strategy allowed a single scheme to be carried out throughout 89 totally different amenities ruled by a combination of English, New York and German legislation and reflecting quite a lot of totally different financing buildings.
The Clifford Probability staff was led by companions William Glaister (London, Asset Finance) and Philip Hertz (London, Restructuring), with help from senior associates Tim Bennett, James McNicol and Richard Evans. Jennifer DeMarco (New York, Restructuring), Michelle McGreal (New York, Restructuring) and Zarrar Sehgal (New York, Asset Finance) suggested on U.S. facets of the restructuring, together with in search of recognition of the scheme underneath Chapter 15 of the US Chapter Code.