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Clifford Chance assists Nordic Aviation Capital in $ 6 billion debt restructuring

Nordic Aviation Capital, an aircraft leasing company based in Denmark and headquartered in Ireland, …

Nordic Aviation Capital, a Denmark-based aircraft leasing company headquartered in Ireland, enlisted the expertise of Clifford Chance’s Magic Circle in a 6-month debt restructuring plan. billions of dollars.

Anglo-French financial services firm Rothschild & Co and Irish law firm McCann Fitzgerald also provided advice to NAC.

The restructuring covers $ 6 billion in secured and unsecured debt of Nordic Aviation, using a creditworthy Irish arrangement scheme and certain bilateral agreements.

Although Nordic Aviation entered the Covid-19 pandemic in a strong cash position, the severe blow the pandemic has taken on the aviation industry has caused it financial hardship.

Less than a month after lockdown measures began, in April, Auckland Airport appealed to King & Wood Mallesons for a Fund raising, while Gide Loyrette Nouel, White & Case and Allen & Overy participated in Air France’s € 7 billion funding in May, and Cathay Pacific Airways hired Linklaters for a recapitalization in June.

In a statement, Nordic Aviation CEO Søren Overgaard said: “The Covid-19 pandemic has had a severe impact on businesses around the world, in all sectors, but in particular the travel industry. As is the case with other leasing companies, we have seen a number of our tenants severely strained during the pandemic and have granted them deferred payments of 40% of our income over the past six years. last months. “

The restructuring of Nordic Airline Capital aims to provide a stable platform on which the company can survive, deferring some principal and interest payments, until the aviation-related tensions of Covid-19 are over. relieved. The restructuring also involves the waiver of certain restrictive covenants that would otherwise have been viewed as violated due to current industry struggles.

The terms of the restructuring, which concerned deferrals and the freezing of payments for the next six months to one year, received strong support from Nordic Aviation’s creditors.

The scheme of arrangement, which depended on the existence of a common guarantor for the financing concerned, also provided for financial relief conditions extending to each principal debtor of Nordic Aviation. This enabled the implementation of a unique program in 89 institutions, which are governed by English, German and New York law, meaning that different funding structures were involved.

Clifford Chance employed a team of advisers led by William Glaister, London-based asset financing partner, and Philip Hertz, restructuring partner, assisted by, among others, New York-based senior partners Tim Bennett, James McNicol and Richard Evans, and Jennifer DeMarco.

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