Recovering and Remarketing a Portfolio of 737 Classics
- Technical – we deployed technical resources onsite to inspect the aircraft portfolio and collect, audit, and digitalise the records. Our team prepared the technical data room, and remarketing specifications.
- Valuation – based on the outcomes and findings of our inspection work, we advised the bank on the expected market value of the assets, the impact of various claims being held against the assets; and what impact this was likely to have on the predicted disposal proceeds and timeframe for sale.
- Remarketing – we actively remarketed the portfolio of assets to a range of operators and investors while negotiating settlement agreements with the various claimants, and managing the disposal transaction on behalf of the bank.
- ACC Aviation was successfully able to recover and remarket the aircraft portfolio. The value of the claims amounted to a material portion of the asset value and ACC Aviation was able to arrange discounted settlement agreements which increased the banks recoverable proceeds by several hundred thousand dollars.
- All three units were eventually sold to an aircraft lessor and operated by an airline in the same jurisdiction as the previous operator, enabling the aircraft to remain on the same aircraft register, easing the transfer and the subsequent maintenance process.
ACC Aviation provided valuable assistance to a West African financial institution by helping them protect their interests and reduce financial exposure during an aircraft remarketing process. Through careful tailoring of the aircraft lease agreement to account for the unique technical condition of the aircraft, ACC Aviation was able to help the lender structure a lease that effectively transferred significant risk and capital expenditure to the lessee.
ACC Aviation's asset management team recently assisted an HNWI in aircraft remarketing and disposing of a Boeing 737-300 aircraft. The aircraft, awarded to the client through a court-ordered settlement, belonged to the now-defunct Tayaran Jet.
ACC Aviation was engaged to perform the lease return process on our client’s behalf, performing the physical and technical inspection of the components, ensuring the components met lease return conditions, preparing and managing an open items list, and preparing the technical data room files in support of the remarketing process.
Our client set out to launch and manage a Shariah-compliant aircraft leasing fund with a targeted capitalisation of five billion dollars. The structure of the fund required a combination of equity and debt, with a targeted asset profile of new narrowbody and widebody aircraft.