N. Chesterfield, VA -- (ReleaseWire) -- 12/29/2021 --Nordic Aviation Capital ("NAC"), the world's largest regional aircraft lessor and the sixth largest commercial aircraft lessor, has filed for bankruptcy seeking to restructure its debt under chapter 11 of the bankruptcy code. Bankruptcy petitions were filed by NAC and over 100 affiliated debtors. NAC and its affiliated debtors filed for bankruptcy protection on December 17, 2021 and December 19, 2021 in the Eastern District of Virginia, Richmond Division.
The hearings on NAC's first day motions were held via Zoom on Tuesday, December 21st at 9:00 a.m. in the virtual courtroom of Judge Kevin Huennekens. The standard first day motions were brought and approved at the hearing:
1. Wages Motion
2. Cash Management Motion
3. Vendors Motion
4. Customer Programs Motion
5. Taxes Motion
6. Insurance Motion
7. Joint Administration Motion
8. Claims & Notice Agent Application for Epiq
9. Statement of Financial Affairs Extension & Creditor Matrix Motion
Notably absent from the first day motions was the debtor-in-possession ("DIP") financing motion. Chad Husnick of Kirkland & Ellis LLP, proposed counsel for NAC, advised that the DIP motion will be brought in January 2022 as NAC has sufficient cash on hand to fund operations during the early part of its bankruptcy case.
At the first day hearings, Mr. Husnick painted of picture of the once profitable enterprise being forced into bankruptcy due to reduced travel caused by the Covid-19 pandemic.
Mr. Husnick outlined a brief layover in bankruptcy with the following milestone dates:
1. File Plan & Disclosure Statement on January 18, 2022
2. Entry of Disclosure Statement Order on March 18, 2022
3. Entry of Confirmation Order on April 18, 2022
4. Plan Effective Date on May 18, 2022
Additionally, Mr. Husnick detailed that NAC has entered into a restructuring support agreement ("RSA") with over 73% of NAC's approximately $6.3 billion in debt obligations. The terms of the RSA establish the framework for a consensual and comprehensive financial restructuring that will restructure the Company's debt obligations, provide additional capital through a new equity rights offering, and best position NAC for future growth and success as global economic and industry conditions continue to improve.
The RSA contemplates a consensual and comprehensive restructuring of the Company's debt obligations with an infusion of $537 million in additional capital through a $337 million new equity rights offering and a new $200 million revolving credit facility.
NAC has obtained an additional $170 million debtor in possession financing facility from its existing creditors to help fund operations during the Chapter 11 process. The additional capital will serve to support the Company's liquidity position and its plans to pursue growth in purchasing aircraft.
About Ronald Page
Ronald Page (http://rpagelaw.com) is a corporate bankruptcy attorney based in Richmond, Virginia. Ronald Page, PLC has extensive experience serving as local counsel and representing secured and unsecured creditors in bankruptcy proceedings. Please contact Ronald Page, a Richmond Virginia Bankruptcy Attorney (http://rpagelaw.com/), if you need assistance protecting your interests in NAC's bankruptcy.
Ronald Page, PLC
PO Box 73087
N. Chesterfield, VA 23235