Nordic Aviation Capital (NAC) announced that it has successfully exited from the Chapter 11 restructuring process, having received confirmation of its plan of reorganisation from the bankruptcy court on 19 April. The company said it is now “well-positioned for the future having eliminated nearly US$4.1 billion of debt, while significantly enhancing its liquidity, with access to approximately US$537 million in additional capital to fund operations and growth opportunities”.
Since September 2021, NAC has focused on four strategic initiatives, including right-sizing the balance sheet, driving organisational change, stabilising the portfolio and pivoting towards growth. Progress has been made across all initiatives and the Company is on track for recovery and growth, supporting its aim to remain the global leader in regional aircraft leasing and expand into adjacent single-aisle areas by leveraging its world-class asset management platform.
As outlined in NAC’s plan of reorganisation, NAC has appointed a new board of directors effective immediately. The board will be led by Chairman Klaus Heinemann and President & CEO Norman C.T. Liu with the support of non-executive directors Justin Bickle, Patrick Blaney, Martin Cooke, Paul O’Donnell, Catherine Duffy and Dermot Mannion.
Heinemann said, “I am delighted to join the NAC board at this pivotal time in the company’s history. I would like to thank the outgoing NAC board for their diligent guidance through what has been a complex and challenging process. Today we begin a new chapter at NAC with a strategy focused on growth and I look forward to working with the NAC team to help drive the Company’s strategic plan and achieve sustainable, long-term success.”
Liu said, “Substantial progress has been made to ensure that we are moving forward with a solid financial foundation, a leaner and more efficient operating model and access to growth capital to invest in our business. I look forward to the months ahead as we reposition ourselves for growth. I want to thank our employees, customers and business partners for their steadfast support, which allowed us to maintain normal operations throughout this process.”
The exit follows recent rating announcements for the company. S&P assigned Issuer Credit Ratings of ‘B’ to Nordic Aviation Capital DAC and Nordic Aviation Capital 29 and a ‘B’ issue-level rating to Nordic Aviation Capital 29 Senior Secured Notes and Senior Secured Term Loan B, with a stable outlook. Moody’s assigned a Corporate Family Rating of ‘B2’ to Nordic Aviation Capital DAC and a ‘B2’ issue-level rating to Nordic Aviation Capital 29 Senior Secured Notes and Senior Secured Term Loan B, with a stable outlook.
NAC is a regional aircraft lessor with more than 60 customers globally. NAC’s fleet of 390 owned and on-order aircraft includes ATR 42, ATR 72, De Havilland Dash 8, Airbus A220 and Embraer E-Jet family aircraft.
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