Nordic Aviation Capital, the world’s largest regional aircraft lessor, today announced that its lenders have voted unanimously to approve its proposed scheme seeking to implement a standstill on and deferral in respect of certain payment of interest and principal on its borrowings, covering the next 6-12 months.
The standstill and deferral agreement signed with lenders covers interest and principal payments due over the next six to 12 months on $6bn (€5.3bn) of debt. Last month, NAC presented a scheme of arrangement to the High Court in Dublin to propose the standstill and deferral. The agreement secured yesterday will still have to be formally sanctioned by the court. A hearing is expected on or close to July 21.
Yesterday the meetings of the secured and unsecured classes of scheme creditors took place.
“For the scheme to be approved, 75% in value and 50% in number were required to vote in its favour. NAC is delighted to report that the scheme was approved and that no lender voted against the proposal,” the lessor said in a statement.
Søren Overgaard, chief executive of Nordic Aviation Capital, said, “The COVID-19 pandemic has had a severe impact on businesses across the world, in every sector, but particularly for the travel industry. As is the case with other leasing companies, we have seen a number of our lessees severely challenged during the pandemic and we have granted them deferred payments of 40% of our revenue in the past 6 months”.
Gareth Halpin, chief funding officer of Nordic Aviation Capital, said: “This agreement has required months of hard work between teams across the world. We have liaised with more than 85 lenders who have been very constructive and supportive, and we appreciate their trust in our people and our business model. We look forward to working alongside all of them as the economy begins to recover”.
The long-term equity shareholders EQT Partners, KIRKBI Invest, GIC and Martin Moller, its founder and Chairman, previously committed to investing $60m of new equity as a signal of their confidence in the prospects for the business and their support for its strategy.
NAC was advised by Rothschild & Co, Clifford Chance and McCann Fitzgerald.