Wilmington Trust, a leader in corporate and institutional trust services, announces it has been appointed security trustee for Irish-based Nordic Aviation Capital, as part of the NAC's landmark US$6 billion debt restructuring, pursuant to a solvent scheme of arrangement sanctioned by the Irish High (Commercial) Court on 21 July 2020 following overwhelming creditor approval.
The transaction allows NAC to standstill on and defer principal and interest payments on its debt for the next 6 to 12 months, amid the serious impact on the aviation industry due to the COVID-19 pandemic. As security trustee, Wilmington Trust will hold security in respect of a pool of 236 aircraft supporting various NAC debt facilities.
"We're proud to have helped ensure a successful transaction that will allow NAC flexibility with its lenders during this unprecedented time," said Jean-Christophe Schroeder, Senior Vice President, Wilmington Trust. "Our appointment as security trustee highlights our continued leadership in loan agency services, particularly in the aviation industry."
NAC is the industry's leading regional aircraft lessor serving approximately 75 airline customers in over 50 countries. NAC's current fleet of almost 500 aircraft includes ATR 42, ATR 72, Bombardier Dash 8, CRJ900/1000, Airbus A220 and Embraer E-Jet family aircraft. Wilmington Trust worked with Watson Farley & Williams as legal counsel on the appointment. The team supporting the transaction includes Elaine Lockhart, European Head of Agency; Caroline Magee, Managing Director Sales; Chris Hurford, Vice President; and Keith Reader, Vice President.
Wilmington Trust is a leading provider of services to the loan market, including independent loan agency services, for some of the largest and most complex restructurings in the U.S. and Europe. Taking a non-lender role, the firm acts as a neutral, impartial agent on new originations and successor appointments. Its tenured staff, combined with its financial stability and quality of service make Wilmington Trust the agent of choice for banks, funds, debt advisors, and lawyers in need of an independent agent. Wilmington Trust is backed by the strength and stability of its parent company, M&T Bank, with $124.6 billion in balance sheet assets as of March 31, 2020.
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