Shareholders of Nordic Aviation Capital (NAC), the world’s largest regional aircraft lessor, agreed to inject US$60 million of new equity into the company. Separately, the company has had constructive discussions with its largest lenders over a possible debt standstill and deferral to counteract the negative impact that COVID-19 has had on the business and to ensure stability as the aviation market gradually recovers
. In light of these discussions with lenders, the company applied to the High Court in Dublin, launching a Scheme of Arrangement (the Scheme) under the Irish Companies Act. If approved, the Scheme would be an agreement between NAC and its lenders to standstill and defer the payments of interest and principal on its borrowings, covering the next 6-12 months. It is a mechanism available under Irish law that allows solvent companies to implement arrangements with lenders. It requires court approval and the agreement of lenders voting in classes representing 75 percent by value and more than 50 percent by number. As a result of the COVID-19 outbreak the company has encountered a large number of lessees deferring lease payments.
The long-term equity shareholders in NAC, EQT Partners, KIRKBI Invest, GIC (the sovereign wealth fund of Singapore) and Martin Moller, its founder and chairman, have committed US$60 million of new equity as a signal of their confidence in the prospects for the business and their support for its strategy, the company said.