The leasing of a commercial aircraft to an airline in a foreign jurisdiction presents risks to the lessor and its secured lender, including whether an aircraft may readily be repossessed if a lease event of default occurs....more
6/22/2021
/ Aircraft ,
Aircraft Equipment ,
Aircraft Financing ,
Aircraft Sales ,
Airlines ,
Aviation Industry ,
Cape Town Convention ,
Commercial Bankruptcy ,
Cross-Border Transactions ,
Debt Restructuring ,
Debtors-in-Possession ,
Finance Lease Contract ,
Insolvency ,
Repossess
Key Points -
The risk that prepetition lease payments made by a lessee that is a debtor in a US bankruptcy will be clawed back from an aircraft lessor can be reduced if:
- the lease is a true lease rather than a...more
Often an aircraft financer will structure a secured aircraft loan as a full payout lease in order to facilitate the exercise of remedies in the case of a default by the borrower airline. Specifying that the lease is governed...more