Voyager Aviation Holdings (VAH) has reached an agreement with Azorra Explorer Holdings (an affiliate of Azorra Aviation Holdings) (Azorra) to sell substantially all of VAH’s assets and for Azorra to assume and maintain ongoing employee and business arrangements with VAH’s employees and aircraft lessees. The agreement was announced at 10pm (UK) on Thursday 27th July 2023.
VAH has filed for voluntary protection under Chapter 11 of the US Bankruptcy Code to "to execute an efficient and value-maximizing sale". The parties have announced that VAH is entering Chapter 11 with a sale agreement with Azorra, a Chapter 11 plan and the support of key financial stakeholders to sell substantially all of VAH’s assets and transition its employees and lease agreements to Azorra, as documented in a restructuring support agreement.
The parties stated that the combined platform would benefit from a "multitude of advantages", including scale, asset and customer diversification, a strong balance sheet and the melding of two world-class teams. VAH's release said that the agreement "will create a stronger, more diversified platform as VAH and Azorra bring together a global customer base, talented employees, and unique commercial aircraft leasing solutions to better serve their airline customers".
“VAH has always focused on using its entrepreneurial culture to provide the best possible support and service for our customers, and we are confident that this combination positions us to benefit all of our stakeholders,” said VAH’s executive chairman, Hooman Yazhari. “The agreement with Azorra presents the best opportunity for our airline customers and employees, and we look forward to a very bright future.”
Yazhari will be stepping down from his role as executive chair following a transition period and continuing as a non-executive director, with the company being steered by new appointee Robert Del Genio from FTI Consulting who will take over as chief restructuring officer.
After what VAH called a robust marketing process, the company and its financial advisors determined that the agreement with Azorra would "enable the company to maximize value for all stakeholders, position its assets and valued customers for continued success, and capitalize on the rebound of the commercial aircraft leasing industry". VAH and Azorra have a "shared vision" of continuing to innovate with a "focus on growth and stability that will serve as a strong foundation for the future of the fast-growing business".
VAH will continue operating as usual and stated that it is working to close the sale process "as soon as possible, with the target of completing sales, including the lease novations by Q4 2023 – Q1 2024". The company says that it is confident that the sale to Azorra creates a "unique and differentiated platform, which will be well placed to capture the new opportunities the airline market is presenting, serve its customers and provide its employees the best possible place to work".
VAH was advised by Milbank, Vedder Price, Greenhill & Co, and FTI Consulting.
The combined fleet with meld a widebody fleet on lease with prominent passenger airlines with a solid fleet of regional jets and A220s.
VAH's client base includes Air France, Breeze Airways, Cebu Pacific, ITA, Philippine Airlines, Sichuan Airlines, and Turkish Airlines. Azorra currently owns and manages a fleet of 83 aircraft on lease to 25 operators in 19 countries around the world, with total commitments of more than 140 aircraft including orders for new Airbus A220-100/300 aircraft and Embraer E190/195-E2s.