Financial Advisory
Cliffordchance
Full Credential Description
Nordic Aviation Capital (NAC), the worlds largest regional aircraft lessor, faced significant financial distress due to the fallout from the global aviation crisis, despite entering the situation with a strong liquidity position. The challenge was to restructure approximately $6 billion of secured and unsecured debt while navigating the complexities of the aviation markets downturn. Clifford Chance provided a tailored solution through a solvent Irish scheme of arrangement, which included deferring certain principal and interest payments and waiving covenants that would likely have been breached due to the market . This innovative restructuring approach was supported overwhelmingly by NACs financial creditors and involved a unique mechanism that utilized a common guarantor across various financings. This allowed for a single scheme to be implemented across 89 different facilities governed by a mix of English, New York, and German law, accommodating a variety of financing structures. The restructuring not only stabilized NACs financial position but also positioned the company for recovery as the aviation market begins to rebound. The successful implementation of this scheme, which included bilateral arrangements and recognition under Chapter 15 of the US Bankruptcy Code, exemplified a strategic and comprehensive response to the niche issues faced by NAC during a critical period in the aviation industry.