Nordic Aviation Capital Designated Activity Company (NAC) has released that the U.S. Bankruptcy Court for the Eastern District of Virginia has confirmed the company’s plan of reorganization, which should enable the company to emerge from Chapter 11 before the end of May. The plan was approved by the court with the consent of the company’s existing equity holders and over 99% of voting creditors voting in favour of the plan, reflecting broad consensus among the company’s stakeholders.
The plan, which will take effect upon emergence, will reduce NAC’s total outstanding debt by US$4.1 billion pursuant to various equitization, sale, and recapitalisation transactions. With an infusion of nearly US$540 million in new capital through approximately US$337 million in new equity financing and US$200 million in new revolving credit loans, the plan achieves significant financial flexibility to support continued investment in the long-term growth of the company. Additionally, the Plan will extend existing funded debt maturities and effectuate the orderly exit of certain creditor groups from the reorganised NAC structure. Critically, NAC’s restructuring will preserve the strength of the platform and the long-standing relationships the company maintains with its customers and suppliers. The company will maintain its position as one of the largest lessors globally, with over 350 aircraft on lease to a diverse customer base.Email Post to a Friend