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Bloomberg
Creditors of Nordic Aviation Capital AS are one step closer to taking control of the company, one of the world’s largest aircraft lessors.
Nordic Aviation and its biggest creditor groups have reached an agreement on the outline terms of the company’s restructuring framework, according to a statement.
The deal, in principle, 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. Major company shareholders — Singapore’s sovereign fund GIC and private equity firm EQT Partners — said in March they wouldn’t contribute further to support the business after injecting $60 million in 2020.
Travel restrictions imposed across the globe to curb Covid-19 have severely impacted Nordic Aviation’s leasing
and lease-management businesses. The company reported a loss of $2.36 billion for the fiscal year ending June 30, according to the statement.