One of Germany’s largest banks has successfully applied to the High Court to liquidate three Irish-based companies controlled by aircraft leasing giant Carlyle Aviation in a dispute over $60 million (€59 million) in loans.
In the spring, the German Nord LB applied to the High Court to liquidate the companies, and the applications have now been granted. Anne O’Dwyer and Declan Taite of service firm Kroll have been appointed joint liquidators.
The three companies control three jets leased to airlines including China’s Hainan Airlines.
The three companies – Victoria Peak Aviation, Panda Aviation and Clementine Aviation – were previously owned by Dublin-based Fly Leasing, which was acquired by Carlyle Aviation last year. That deal was cemented on August 2 last year.
It made Carlyle the sixth largest aircraft lessor in the world with $10 billion in assets under management. Last December, a subsidiary of Carlyle Aviation agreed to buy $4 billion worth of jets from Dublin-based lessor AMCK.
Nord LB issued reminders against Victoria Peak Aviation, Panda Aviation and Clementine Aviation in August last year, but the two sides continued their efforts to negotiate a settlement over the millions of dollars in debt.
By the end of 2020, the three companies had combined loans owed to Nord LB just over $60 million, the companies’ accounts show.
These accounts also indicate that in May 2021 the term of the loans they owed to Nord LB was extended to August 13, 2021.
“On August 25, 2021, the lender issued a notice of default,” says the balance sheet. “The facility is non-recourse. The servicer is currently in discussions with the lender on behalf of the directors to address the situation in a manner that is commercially reasonable for all parties involved,” read the accounts for each of the lease units, which are now being wound up.
Company records show that Nord LB holds encumbrances on assets of the three leasing units going back a decade.
The one aircraft controlled by Victoria Peak Aviation is valued at approximately $45 million. The 15-year-old Boeing 737-800 is leased to the Chinese Hainan Airlines and was last used by its subsidiary Lucky Air. It is now in storage.
Clementine pilots an Airbus A320-200. It was last used by Finnair, but is listed as in storage by an aviation website.
The only jet controlled by Panda Aviation is a Boeing 737-800, which was operated by Hainan subsidiary Lucky Air. The lease for this jet has been extended from April 2021 to May 2023. At the end of 2020, the plane was valued at $24.3 million.
https://www.independent.ie/business/irish/german-bank-gets-approval-from-high-court-to-wind-up-irish-jet-units-41888505.html Deutsche Bank receives High Court authorization to wind up Irish jet units