Law, Policy & Markets

International Restructuring: Solving an Aircraft Finance Puzzle – “Flying is Easy; Landing is Hard”

September 14, 2020
Law, Policy & Markets
International Restructuring: Solving an Aircraft Finance Puzzle – “Flying is Easy; Landing is Hard”
Chapters
Law, Policy & Markets
International Restructuring: Solving an Aircraft Finance Puzzle – “Flying is Easy; Landing is Hard”
Sep 14, 2020

How do you pay for planes and cover billions in debt when people stop flying and airlines are going broke? The global pandemic and economic slowdown have radically altered the financial landscape for airlines, aircraft manufacturers and leasing companies around the world. Our story today is about how Nordic Aviation Capital (NAC) – a leading aircraft lessor worth over $8 billion – navigated the sudden collapse in air traffic in 2020 with help from its creditors and an Irish court. Milbank Global Project, Energy & Infrastructure Finance partner Allan Marks, widely experienced in airport development and finance, sat down with partner and co-head of the firm’s London Transportation and Space Group James Cameron and London Financial Restructuring Group partner Karen McMaster, who represented the secured creditors in the NAC restructuring. They discuss how the creditor negotiations unfolded and the legal and commercial issues that led to an innovative Scheme of Arrangement under Irish Law affecting parties in the UK, the European Union, the US, Asia and elsewhere. The issues in this complicated case have broader implications for cross-border restructurings, aircraft finance, and the interplay between domestic and international law, including companies law, insolvency law, treaties for the enforcement of foreign judgments, and the Cape Town Convention. Buckle up, and mind that contents may have shifted in flight.

James Cameron is a top-ranked practitioner with extensive experience acting on a variety of asset leasing and financing transactions involving aircraft, ships, oil rigs, rolling stock and other movable equipment. Read More

As a partner in the firm’s Financial Restructuring Group, Karen McMaster assists buy side and distressed investors structure, negotiate and implement investments in distressed, stressed or special situation credits. Read More

Milbank Conversations host Allan Marks is a Milbank partner and one of the world's leading project finance lawyers, with special expertise in the power and renewable energy, transportation and airports, oil and gas, water, and telecommunications sectors. He advises developers, investors and lenders around the world in the development and financing of complex infrastructure projects, as well as related acquisitions, restructurings and capital markets transactions. Mr. Marks serves as an Adjunct Lecturer at the University of California, Berkeley at the Law School and the Haas School of Business. Read More

More details at Milbank.com. The content provided by and through Milbank Conversations is subject to revision, interpretation, or even nullification after the date of recording. Milbank LLP shall not be liable for any loss that may arise from any reliance on Milbank Conversations or its component parts. All such content should not be construed as legal advice, and readers and listeners should not act upon the information without consulting counsel. Milbank Conversations should not be copied, distributed, published or reproduced, in whole or in part. If you have any comments or questions, please contact [email protected].

Show Notes

How do you pay for planes and cover billions in debt when people stop flying and airlines are going broke? The global pandemic and economic slowdown have radically altered the financial landscape for airlines, aircraft manufacturers and leasing companies around the world. Our story today is about how Nordic Aviation Capital (NAC) – a leading aircraft lessor worth over $8 billion – navigated the sudden collapse in air traffic in 2020 with help from its creditors and an Irish court. Milbank Global Project, Energy & Infrastructure Finance partner Allan Marks, widely experienced in airport development and finance, sat down with partner and co-head of the firm’s London Transportation and Space Group James Cameron and London Financial Restructuring Group partner Karen McMaster, who represented the secured creditors in the NAC restructuring. They discuss how the creditor negotiations unfolded and the legal and commercial issues that led to an innovative Scheme of Arrangement under Irish Law affecting parties in the UK, the European Union, the US, Asia and elsewhere. The issues in this complicated case have broader implications for cross-border restructurings, aircraft finance, and the interplay between domestic and international law, including companies law, insolvency law, treaties for the enforcement of foreign judgments, and the Cape Town Convention. Buckle up, and mind that contents may have shifted in flight.

James Cameron is a top-ranked practitioner with extensive experience acting on a variety of asset leasing and financing transactions involving aircraft, ships, oil rigs, rolling stock and other movable equipment. Read More

As a partner in the firm’s Financial Restructuring Group, Karen McMaster assists buy side and distressed investors structure, negotiate and implement investments in distressed, stressed or special situation credits. Read More

Milbank Conversations host Allan Marks is a Milbank partner and one of the world's leading project finance lawyers, with special expertise in the power and renewable energy, transportation and airports, oil and gas, water, and telecommunications sectors. He advises developers, investors and lenders around the world in the development and financing of complex infrastructure projects, as well as related acquisitions, restructurings and capital markets transactions. Mr. Marks serves as an Adjunct Lecturer at the University of California, Berkeley at the Law School and the Haas School of Business. Read More

More details at Milbank.com. The content provided by and through Milbank Conversations is subject to revision, interpretation, or even nullification after the date of recording. Milbank LLP shall not be liable for any loss that may arise from any reliance on Milbank Conversations or its component parts. All such content should not be construed as legal advice, and readers and listeners should not act upon the information without consulting counsel. Milbank Conversations should not be copied, distributed, published or reproduced, in whole or in part. If you have any comments or questions, please contact [email protected].