Industry Addendum: Finance
Investors add US$60 million to Nordic Aviation Capital war chest as lessor seeks debt “standstill”
June 1st 2020
When Patrick de Castlejabac joins the Ireland-headquartered Nordic Aviation Capital (NAC) as CEO in quarter three this year, he will be immediately tested by his management of company’s decision to seek a “possible debt standstill and deferral” of loan commitments to “counteract the negative impact COVID-19” has had on its business. Read More »
To support NAC, rated as the world’s largest lessor of regional aircraft, several long-term shareholders have agreed to inject US$60 million of new equity into the company to support it through the pandemic.
“In light of these discussions with lenders, the company today [June 5] applied to the High Court in Dublin for launching a scheme of arrangement under the Irish Companies ACT”, a NAC statement said.
‘If approved, the scheme would be an agreement between NAC and its lenders to standstill and defer payments of interest and principal of its borrowings covering the next six to 12 months.”
NAC owned 500 aircraft at January 1, 2020, but said COVID-19 had resulted “in a large number of lessees deferring lease payments”. As a result, NAC “has been liaising with lenders concerning the standstill and deferral of debt”.
Outgoing CEO, Soren M. Overgaard, said: “The anticipation of a prolonged recovery from COVID-19 drove the requirement to undertake this complex engagement process with our lenders.”
The requested debt holiday requires “court approval and the agreement of lenders voting in classes of representing 75% by value and more than 50% by number”, NAC said.
