Norton Rose Fulbright advises group of secured creditors on US$6bn Nordic Aviation Capital debt restructuring
Global | Press release - Business | June 2022
Global law firm Norton Rose Fulbright has advised an ad hoc group of secured creditors on the US$6bn debt restructuring of the world’s largest regional aircraft leasing company, Nordic Aviation Capital DAC (NAC), which completed on the 1st June 2022.
The restructuring was implemented through a pre-arranged Chapter 11 process in the US Bankruptcy Court.
The group of creditors, with combined claims of approximately US$1bn, included Deutsche Bank, MUFG, Development Bank of Japan, Korea Development Bank, Investec, Export Development Canada, New York Life and JP Morgan, as well as several other lenders under syndicated facilities.
The firm worked on new financing structures for 118 aircraft – on lease to a large number of airlines around the world – previously under multiple financing facilities. These included direct loans, finance leases, JOLCO financings and Export Credit financings, with some aircraft remaining within the NAC group on restructured terms and other aircraft transitioning to the control of creditor groups who elected to exit from the NAC business.
It also worked on negotiations and amendments to multiple other facilities and structures, in line with the process negotiated in the restructuring support agreement, which was signed in December 2021.
Duncan Batchelor, global head of aviation at Norton Rose Fulbright, said: “As one of the largest US Chapter 11 bankruptcy proceedings ever undertaken by an aircraft leasing company, this was a fascinating case to work on. I am delighted that this restructuring has come to a successful conclusion and that there is now a strong foundation in place for future development and growth.”
Norton Rose Fulbright’s London and Paris offices provided the lead advice on aviation finance and all related issues. Its New York, Singapore, Luxembourg and Paris offices advised on local law matters. Co-counsel Weil Gotschal & Manges advised on the restructuring through their teams in London and New York, and Dillon Eustace provided Irish law advice.
The firm’s multi-award winning, global aviation practice holds 11 Tier 1 rankings across the leading legal directories, Chambers and Partners and Legal 500, based on the feedback of clients and peers.
