Nordic Aviation Capital DAC’s US$6 Billion Debt Restructuring

Norton Rose Fulbright, Weil Gotschal & Manges, Watson Farley & Williams, A&L Goodbody and Dillon Eustace advised on the matter. Linklaters has advised an ad hoc group of lenders under a revolving credit facility, along with creditors under certain other bilateral and Schuldschein facilities.

The restructuring was implemented through a pre-arranged Chapter 11 process in the US Bankruptcy Court.

The group of creditors, with combined claims of approximately US$1bn, included Deutsche Bank, MUFG, Development Bank of Japan, Korea Development Bank, Investec, Export Development Canada, New York Life and JP Morgan, as well as several other lenders under syndicated facilities.

The firm worked on new financing structures for 118 aircraft – on lease to a large number of airlines around the world – previously under multiple financing facilities. These included direct loans, finance leases, JOLCO financings and Export Credit financings, with some aircraft remaining within the NAC group on restructured terms and other aircraft transitioning to the control of creditor groups who elected to exit from the NAC business.

It also worked on negotiations and amendments to multiple other facilities and structures, in line with the process negotiated in the restructuring support agreement, which was signed in December 2021.

Duncan Batchelor (Picture), global head of aviation at Norton Rose Fulbright, led on the matter.

Norton Rose Fulbright’s London and Paris offices provided the lead advice on aviation finance and all related issues. Its New York, Singapore, Luxembourg and Paris offices advised on local law matters. Co-counsel Weil Gotschal & Manges advised on the restructuring through its teams in London and New York, and Dillon Eustace provided Irish law advice.

The cross-border Linklaters team was led by partners Rebecca Jarvis (Restructuring & Insolvency, London), Olga Petrovic (Asset Finance, London), and Robert Trust (Banking, New York), and supported by partners Caroline Courtney (Asset Finance, London) and Christopher Hunker (Banking, New York), together with counsel Klaudia Królak (Banking, Warsaw), senior US associate Nicholas Vislocky (Banking, New York) and managing associate Sam Kennerley (Restructuring & Insolvency, London). The team was also supported by a cross-border team of colleagues across various jurisdictions.

The Weil team was led by Restructuring partners Neil Devaney, Andrew Wilkinson, Jenny Davidson and Matt Benson in London and Matt Barr, Kelly DiBlasi and David J. Cohen in New York. They were assisted in London by Restructuring counsel Nick Fortune and Harriet Fielding, Restructuring associates Jonathon New, Fergus Kent, Valean Gherendi, Jonathan Woods and James Ekwem; and in New York by Restructuring associates Angeline Hwang, Daphne Papadatos, Frances Ha, Sean Sheng, Kenny Hildebrand and Ashley Suarez. The Weil team also included New York Litigation partners Ted Tsekerides and Jared Friedmann; London Tax partner Jenny Doak, counsel Stuart Pibworth and associate Enda Kerin; International Tax Head Devon Bodoh and associate Adam Romig; London Banking partner Alastair McVeigh, counsel Luke Lado and associates Inci Aydogdu and Nika Varvariuk; and New York Structured Finance partner Ariel Kronman.

The WFW London Assets and Structured Finance team that advised the creditor group was led by Global Aviation Sector Co-Head Partner Jim Bell, working closely with Assets & Structured Partner Patrick Moore and Associate Alexander Kyriacou, Restructuring & Insolvency Partner Stephen Parker and Dispute Resolution Partner Charles Buss. US law expertise was provided by New York Dispute Resolution Partner John Kissane, Counsel Celinda Metro and Associate Sabih Siddiqi.

ALG advised the lenders on all Irish law aspects of the transaction with the team lead by David Baxter (Restructuring & Insolvency), Marie O’Brien (Aviation & Transport Finance), Berni Hosty (Corporate and M&A) and James Somerville (Tax) with support from associates, Stephen Ahern, Keith Mulhern and Catherine Mannix. 

The Dillon Eustace team was led by Jamie Ensor, supported by Conor Keaveny, Adrian Benson, David Lawless, Joseph Lynch, Shona Hughes, Shane Harron, Barry Tyrell and others.

Involved fees earner: Stephen Ahern – A&L Goodbody; David Baxter – A&L Goodbody; Berni Hosty – A&L Goodbody; Keith Mulhern – A&L Goodbody; Marie O’Brien – A&L Goodbody; James Somerville – A&L Goodbody; Adrian Benson – Dillon Eustace Solicitors; Jamie Ensor – Dillon Eustace Solicitors; Shane Harron – Dillon Eustace Solicitors; Shona Hughes – Dillon Eustace Solicitors; Conor Keaveny – Dillon Eustace Solicitors; David Lawless – Dillon Eustace Solicitors; Joseph Lynch – Dillon Eustace Solicitors; Caroline Courtney – Linklaters; Christopher Hunker – Linklaters; Rebecca Jarvis – Linklaters; Klaudia Królak – Linklaters; Olga Petrovic – Linklaters; Robert Trust – Linklaters; Nicholas Vislocky – Linklaters; Duncan Batchelor – Norton Rose Fulbright; Jim Bell – Watson Farley & Williams; Charles Buss – Watson Farley & Williams; John Kissane – Watson Farley & Williams; Alexander Kyriacou – Watson Farley & Williams; Celinda Metro – Watson Farley & Williams; Patrick Moore – Watson Farley & Williams; Stephen Parker – Watson Farley & Williams; Sabih Siddiqi – Watson Farley & Williams; Inci Aydogdu – Weil, Gotshal & Manges; Matt Barr – Weil, Gotshal & Manges; Matt Benson – Weil, Gotshal & Manges; Devon Bodoh – Weil, Gotshal & Manges; David Cohen – Weil, Gotshal & Manges; Jenny Davidson – Weil, Gotshal & Manges; Neil Devaney – Weil, Gotshal & Manges; Kelly DiBlasi – Weil, Gotshal & Manges; Jenny Doak – Weil, Gotshal & Manges; James Ekwem – Weil, Gotshal & Manges; Harriet Fielding – Weil, Gotshal & Manges; Nick Fortune – Weil, Gotshal & Manges; Jared Friedmann – Weil, Gotshal & Manges; Valean Gherendi – Weil, Gotshal & Manges; Frances Ha – Weil, Gotshal & Manges; Kenny Hildebrand – Weil, Gotshal & Manges; Angeline Hwang – Weil, Gotshal & Manges; Fergus Kent – Weil, Gotshal & Manges; Enda Kerin – Weil, Gotshal & Manges; Ariel Kronman – Weil, Gotshal & Manges; Luke Lado – Weil, Gotshal & Manges; Alastair McVeigh – Weil, Gotshal & Manges; Jonathon New – Weil, Gotshal & Manges; Daphne Papadatos – Weil, Gotshal & Manges; Stuart Pibworth – Weil, Gotshal & Manges; Adam Romig – Weil, Gotshal & Manges; Sean Sheng – Weil, Gotshal & Manges; Theodore Tsekerides – Weil, Gotshal & Manges; Andrew Wilkinson – Weil, Gotshal & Manges; Jonathan Woods – Weil, Gotshal & Manges;

Law Firms: A&L Goodbody; Dillon Eustace Solicitors; Linklaters; Norton Rose Fulbright; Watson Farley & Williams; Weil, Gotshal & Manges;

Clients: Deutsche Bank; Development Bank of Japan; Export Development Canada; Investec Ltd; JP Morgan; Korea Development Bank; MUFG; New York Life Investment Alternatives;

Giulia Di Palma

Author: Giulia Di Palma