BY Fraser Tennant
One of the world's largest aircraft leasing companies Nordic Aviation Capital (NAC), together with its subsidiaries, has filed for Chapter 11 bankruptcy in order to implement a financial restructuring plan.
Under the terms of its restructuring support agreement (RSA), NAC’s debt obligations will be comprehensively restructured, including the conversion of a substantial amount of its debt to equity, with an infusion of $537m in additional capital through a $337m new equity rights offering and a new $200m revolving credit facility.
Furthermore, NAC has obtained an additional $170m debtor in possession financing facility from its existing creditors to help fund operations during the Chapter 11 process. The additional capital will serve to support the company’s liquidity position and its plans to pursue growth in purchasing aircraft.
Following its emergence from the Chapter 11 process, the reorganised NAC will be majority-owned by its largest creditors, which are committed to the company’s long-term success and will invest substantial new equity capital in the business.
“NAC is taking this proactive step in the US because we believe it is the most efficient and effective way to implement a consensual and comprehensive financial restructuring,” said Justin Bickle, vice chairman of NAC and chairman of its restructuring committee. “With the strong support we’ve received from our lenders to date, we are pleased to be entering the Chapter 11 process with a restructuring support agreement in place.”
The industry’s leading regional aircraft lessor serving almost 70 airlines in approximately 45 countries, NAC’s fleet of 475 aircraft includes ATR 42, ATR 72, De Havilland Dash 8, Mitsubishi CRJ900/1000, Airbus A220 and Embraer E-Jet family aircraft.
“I am comforted to see the significant support demonstrated by the lenders and their confidence in NAC’s business model,” concluded Martin Moller, former chairman and founder of NAC. “I have the utmost confidence in the company’s resilience and ability to continue to serve customers in a sustainable manner throughout this process and beyond.”
News: Nordic Aviation Capital Files Bankruptcy to Overhaul Debt