Limerick-based NAC remains low key as $ 6 billion debt deal expires


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Limerick-based aircraft leasing giant Nordic Aviation Capital has remained tight-lipped on talks over its $ 6 billion (€ 5 billion) debt after an extension of a deal expired yesterday forbearance concluded with lenders.

Nordic Aviation Capital (NAC), the world’s largest regional aircraft lessor and the world’s fifth-largest aircraft lessor, has evaluated options, including a potential review, as it grapples with the the impact of pandemic in the aviation sector.

Earlier this month, the lessor remained stuck in talks with its creditors before a forbearance extension expired yesterday.

The lessor, headed by former ATR boss Patrick de Castelbajac, has around a hundred creditors.

The forbearance extension was obtained earlier this year as the ASB tried to come up with a more permanent solution. The lessor declined to comment yesterday.

In recent weeks, the the talks were seen as productive.

Despite this, the NAC commissioned PwC director Declan McDonald to manage a possible review process in Ireland.

The Independent Irish first revealed in March that NAC was considering restructuring options, including Chapter 11 bankruptcy in the United States for some of its units there.

NAC, which has a fleet of nearly 500 turboprop and jet airplanes, continued to place planes with customers amid the resumption of air transport.

Last year, the lessor successfully entered into a plan of arrangement, with shareholders – including a vehicle controlled by the family that owns Lego – agreeing to inject $ 60 million in the
business.

The program also secured lenders’ agreement for a standstill and carry-forward agreement that covered tens of millions of dollars of certain interest and principal payments that were owed over the following months on its $ 6 billion debt. of dollars.

The program allowed NAC to defer its principal payments for nine months and interest payments on aircraft financing for five months.

Interest payments on other term loans could be deferred by approximately 17 months.

It also extended the maturity of each of the loans by a further 12 months from the originally scheduled maturity date.

Nordic Aviation Capital recently completed the delivery of the last of the 10 Embraer E190s to the American start-up Breeze.

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About Wanda Dufresne

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