Nordic Aviation Capital Files Bankruptcy to Overhaul Debt
Nordic Aviation Capital Files for Bankruptcy for the Second Time
(Bloomberg) -- One of the world’s largest aircraft leasing company filed for Chapter 11 as it seeks to restructure its finances for the second time since the beginning of the pandemic.
Denmark-based Nordic Aviation Capital A/S sought bankruptcy protection to overhaul about $6 billion of debt. On Sept. 24, the company reached an agreement in principle with creditors to fix its balance sheet.
The company listed both assets and debt of between $1 billion and $10 billion, according to court papers filed in U.S. Bankruptcy Court in Richmond, Virginia.
The restructuring framework includes the conversion of “a substantial amount of the group’s debt into equity,” a $300 million equity rights offering and a $200 million revolving credit facility, the company said. Silver Point Capital and Sculptor Capital Management are set to take control of the company as part of the deal, people familiar with the matter said on Sept. 30.
Silver Point, Sculptor-Led Group to Control Nordic Aviation
Nordic Aviation leases almost 500 aircrafts to about 75 airline customers, according to its website. Two of Nordic Aviation’s shareholders, Stockholm-based private equity firm EQT AB and Singapore’s sovereign fund GIC Pte, have decided not to further support the business, according to a company statement in March.
The case is In re Nordic Aviation Capital A/S, 21-33691, U.S. Bankruptcy Court, Eastern District of Virginia (Richmond).
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