Vedder Price’s Post

The Seabury Aviation Partners and Seabury Securities teams congratulate SAS - Scandinavian Airlines on obtaining the approval of its plan of reorganization from the U.S. Bankruptcy Court for the Southern District of New York. Seabury served as co-lead investment banker and sole restructuring advisor.   Over the course of the chapter 11 process, SAS has successfully reconfigured its aircraft fleet and reached amended lease agreements with 15 lessors, representing 59 aircraft. Through the amended lease agreements, SAS expects to achieve the targeted annual cost savings of at least SEK 1.0 billion in reduced aircraft lease expenses and annual cash flow items relating to aircraft financing. The agreed exit financing transaction with Castlelake Aviation Services Limited includes a total investment in reorganized SAS corresponding to USD 1,200 million, which includes USD 475 million in new unlisted equity and USD 725 million in secured convertible debt.    “This is the first Chapter 11 case involving a European publicly traded company, and this case was exceptionally complicated, given the involvement of three sovereign European countries’ governments,” said John Edward Luth, Chairman, President & CEO of Seabury Capital Group. “We are honored to have served in a lead role in this milestone case, and are pleased that SAS is now well positioned to compete as one of the world’s leading airlines.”   #aviation #airlines #restructuring #teamwork #success #SASForward    https://lnkd.in/gDAAbEdG

Acquiring a business jet is a significant investment that demands expertise, meticulous planning, and an in-depth understanding of the aviation industry. The process involves careful evaluation of market options, detailed inspections, and strategic negotiations to ensure the best value for your investment. From identifying the right aircraft to navigating the complexities of financing and legal requirements, every step requires a dedicated approach to achieve a successful and seamless acquisition. #NAFA #AviationNews #AviationLovers #Aviation #BusinessAviation #PrivateAviation

New Delhi: Budget airline SpiceJet Ltd on Monday informed the National Company Law Tribunal (NCLT) that it has reached a settlement with aircraft lessor Celestial Aviation. The airline has already begun processing some payments under the agreement and requested an additional week to finalize the remaining settlement details. Upon conclusion of all formalities, the lessor has agreed to withdraw the case. Hearing in the case has been adjourned till April. In August last year, Celestial Aviation Services initiated insolvency proceedings actions against SpiceJet, citing a failure to pay $29.9 million for leasing nine aircraft. Celestial Aviation is among five leasing companies that have petitioned the NCLT for the recovery of outstanding payments from SpiceJet. The list includes Willis Lease Finance Corp, Wilmington, Aircastle, and Alterna Aircraft BV Ltd. However, the tribunal has rejected the insolvency applications from Wilmington Trust SP Services (Dublin) in January and Willis Lease Finance in December of the last year. #CorporateInsights #businessupdates #markettrends #ExecutiveBrief #financialnews #globaleconomy #ProfitForecasts #ceoinsights #corporateculture #brandstrategy #industryanalysis #InvestorRelations #FinancialNews

Vedder Price is pleased to share its role as legal counsel to Virgin Atlantic in connection with a structured financing transaction in May 2024. The transaction led by Neil Poland and Joshua Alexander with assistance from Jack Goold, provided Virgin Atlantic with its final Airbus A350-1000 aircraft, which will be integrated into the company’s core aircraft fleet. For further details on this successful transaction, read more at the link below. #VirginAtlantic #GlobalTransporationFinance #AviationFinance

Investment firm Stonepeak’s $3.1bn takeover of freighter aircraft leasing giant ATSG will move ahead following the expiration of a go-shop period. The two businesses entered into a definitive agreement for the deal in early November but this included a 35-day go-shop period, which came to an end at midnight on December 8. During this time, ATSG and its representatives had the right to solicit and consider takeover proposals from third parties. However, the company said yesterday that it had not received any alternative takeover proposals. ATSG said the transaction is expected to close in the first half of 2025, subject to customary closing conditions, including approval of ATSG’s shareholders and receipt of regulatory approvals. Stonepeak is described as an alternative investment firm specialising in infrastructure and real assets and its offer amounted to $22.50 per share in cash. Upon completion of the transaction, ATSG’s shares will no longer trade on NASDAQ and ATSG will become a private company. ATSG fleet includes Boeing 767, Airbus A321, and soon, Airbus A330 converted freighters.  The firm’s subsidiaries comprise ABX Air, Airborne Global Solutions; Airborne Maintenance and Engineering Services, including its subsidiary, Pemco World Air Services; Air Transport International; Cargo Aircraft Management; LGSTX Services and Omni Air International.  Speaking at the time the deal was first announced, ATSG chief executive Mike Berger said: “This transaction reflects the tremendous value of our fleet of in-demand midsize freighter and passenger aircraft, and the strength of our talented teams across ATSG’s businesses. “In Stonepeak, we have found a partner that recognizes the power of our Lease+Plus strategy to provide comprehensive aircraft leasing and operating solutions to our customers. “With Stonepeak’s investment and extensive expertise in transportation and logistics and asset leasing, ATSG will be well positioned to further expand its global presence in the air cargo leasing market and enhance its service offerings to customers.”

NO BUYER, says it all! it never came up with a sustainable business model. Formed in a rush when state owned Estonian Air was cheating in breach of EU rules on illegal state aid, EC demanded EUR 84 million which Estonian Air did not have and shut down but the cheating Estonians had AOC for Nordica ready so on November 8, 2015 Estonian Air was liquidated and another state backed airline was born! and after 9 years its dying after struggling for years. -------------- State-owned airline Nordica files for bankruptcy following failed investment deal By André Orban on 20 November 2024 State-owned airline Nordica and its subsidiary, Xfly, are filing for bankruptcy after a potential investor, Lars Thuesen, withdrew from privatisation negotiations due to high risks. The decision to cease operations was confirmed by the Nordic Aviation Group's board on November 18. CEO Remco Althuis announced the immediate start of bankruptcy proceedings, including returning leased aircraft and notifying relevant authorities. The company, which has 579 employees, informed its staff and partners about the closure. Nordica, established in 2015, had transitioned from operating its own flights to providing outsourcing services after ceasing operations under its name in 2019. Attempts to privatise the airline began in late 2023 but ultimately failed, leading to the company’s closure.

In 2024, private equity firms have continued to play a pivotal role in shaping the aviation industry, with investments spanning airlines, aircraft leasing, and aviation technology. The top 10 private equity groups have collectively invested an estimated $73.5 billion in aviation-related ventures. #privateequity #aviation #finance

Latest report by Ishka: Aviation Finance Carlyle returns to public ABS market with AASET 2024-1 Aircraft asset manager Carlyle Aviation Partners (Carlyle) is in the market with a $428 million aircraft #ABS, making it the first public commercial aircraft securitization to test the capital markets in two years. Ishka believes that the new issuance is likely to become the effective benchmark for the aircraft ABS market for at least the next four months. If pricing is attractive enough, it may encourage other potential issuers (see Insight: ‘Aircraft ABS market ‘open’ but lessors question likely LTVs’). Interested in reading the full report? See link below or shoot me a message.

Nordic Aviation Group files for bankruptcy? NO surprise, never member had a sustainable strategy, just going where the wind blows! -------- Nordic Aviation Group filed (04-Dec-2024) a petition with the court on 29-Nov-2024 to declare Nordica and Xfly bankrupt. Temporary receivers were appointed for Nordica and the court imposed a restriction on all transactions with Nordica's assets, as of 04-Dec-2024. The court will also appoint a temporary bankruptcy administrator for Xfly in the future. The majority of aircraft leased by Nordic Aviation Group were returned to the destination specified by the leasing companies. Nordic Aviation Group also returned aircraft owned by Transporti Varahaldus OÜ to Tallinn Lennart Meri Airport. The company's debts amount to EUR38 million, after deducting the value of assets.

The purchase or sale of a business jet can be a complex undertaking requiring expertise to ensure a maximum return on investment. When purchasing an aircraft, you’ll need to analyze many factors to determine which make and model is best suited for your budget and mission. The Duncan Aviation Aircraft Sales & Acquisitions Team compiled some of their expertise to prepare this Straight Talk book, which explores important considerations when navigating the pre-owned aircraft marketplace. Read now: https://bit.ly/3PRYxLN #DuncanAviation