Aviation advisory on the asset recovery of $600m in non-performing loans
The complexity of the assignment required significant analysis to inform our proposed strategy and recommendations and to advise the bank in a manner that would achieve its mandate.
The project was structured into an iterative discovery, strategy, and implementation cycle, allowing us to advise on the overall process and then address subsets as their own independent implementation projects.
This assignment involved ACC Aviation advising on and implementing the following projects:
- Overall portfolio strategy and segmentation of the portfolio into specific action categories
- Performing technical, valuation, and financial due diligence on aircraft assets and operational debtor airlines; and recommending suitable recovery strategies – repossess, restructure, hold
- Performing technical and valuation due diligence on non-operational assets and advising on suitable recovery strategies – outright disposal or lease placement
- Assessing the impact of the overall strategy and recommendations on the local aviation sector, particularly the impact that execution would have on domestic air capacity.
- Leading the execution of several approved recovery strategies, including
- Remarketing of non-operational aircraft assets
- Advising the bank and practitioners on debtors placed into business rescue
Several of these projects were undertaken in collaboration with a consortium of legal and financial advisors to the bank.
ACC Aviation successfully delivered on Its mandate, supporting the bank to:
- Develop a holistic strategy for value recovery across its aviation portfolio
- Understand the technical condition and value of its security or collateral
- Understand the impact that strategy execution would have on the local aviation market
- Confidently act on strategic initiatives, including repossession and disposal of assets, placing debtors into business recovery, and restructuring debts.
As an outcome, ACC Aviation supported the bank in exiting its non-operational assets and taking steps to ensure that its debtor airlines continued operating – maintaining critical commercial air infrastructure in the African nation.