Recovering and Remarketing a Portfolio of 737 Classics
A European lender had extended senior debt financing to Armavia against a security package of three Boeing 737-500 aircraft. In 2013, Armavia filed for bankruptcy and was subsequently liquidated, leaving the lender exposed to storage, preservation, parking, and insurance costs; and to recovering and remarketing the assets.
While two of the three aircraft were parked in Yerevan and were relatively straight forward recovery cases, the third aircraft was parked at an airport in Poland with several claims against the asset from the local MRO and airport authority. Furthermore, there was little clarity over the physical condition of the aircraft and whether it was airworthy and adequately preserved.
ACC Aviation was engaged to manage the recovery and remarketing of these assets.
- 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.
- Technical due diligence and valuation of the aircraft portfolio
- Preparation of technical data room and remarketing specification
- Negotiation of claims against the assets, securing significant discounts
- Successful remarketing of the portfolio allowing the lender to fully exit the assets
Launch of a Multibillion Dollar Aircraft Leasing Fund
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.
Recovery and remarketing of a non-performing aircraft portfolio
Over ten months, ACC Aviation successfully supported a consortium of lenders to prepare and fully liquidate the non-performing portfolio, recovering significant amounts of capital for the lenders.
Aviation advisory on the asset recovery of $600m in non-performing loans
ACC Aviation was engaged to advise the bank on how best to recover asset value whilst preserving social benefit and to support the implementation of the recommendations.
Financial and Operational Revitalisation of a National Carrier
ACC Aviation was engaged to assist a national airline in developing a restructuring and recapitalisation plan. The plan would enable the airline to increase its credit quality, drive improved financial performance, and build the foundations for enhanced access to capital.