Limerick lender NAC secures extension of $ 6 billion debt deal


LIMERICK-based aircraft leasing giant Nordic Aviation Capital has secured a further extension of a forbearance agreement with lenders over $ 6 billion (€ 5 billion) in debt, reportedly he.

the previous extension of the forbearance agreement that was signed earlier this year expired yesterday. The new extension obtained this week is believed to expire on September 30.

Nordic Aviation Capital (NAC) is the world’s largest regional aircraft lessor and the world’s fifth largest aircraft lessor.

He weighed options, including a potential review, as he grapples with the continuing impact of the Covid pandemic on the aviation industry.

Earlier this month, the lessor remained stuck in discussions with its creditors ahead of the expiration yesterday of the previous forbearance extension.

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 ongoing talks have been seen as productive.

Despite this, the NAC commissioned PwC director Declan McDonald to manage a possible review process in Ireland. 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 completed an arrangement with shareholders, including a vehicle controlled by the family that owns Lego, agreeing to inject $ 60 million (€ 50 million) into the company.

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.

This article was updated on September 21, 2021


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