JP Lease Products units’ plan, statement hearing set for Aug. 5

By Sarah Lizee

Olympia, Wash., July 8 – JP Lease Products & Services Co. Ltd. units JPA No. 111 Co., Ltd. and JPA No. 49 Co., Ltd. had the combined hearing on their Chapter 11 plan and disclosure statement set for Aug. 5, according to a notice filed Friday with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, the companies sold their aircraft to stalking horse bidders Capitol Reef LLC and Isle Royale LLC. The purchase price was $207.74 million, equal to the outstanding principal amount of the senior loans and junior loans associated with the aircraft, plus all accrued interest, and payment of all other indemnification and other out of pocket expenses owed to the senior and junior financing parties; and a cash payment equal to $5 million.

Following the sale and a global settlement with FitzWalter Capital Partners (Financial Trading) Ltd., the debtors received the $5 million in cash to their estates and also obtained the rights to receive the proceeds of the VNA claims portions valued at roughly $7 million.

The plan provides that the debtors will use cash on hand, including the proceeds of the sale, to pay all remaining administrative, priority and unsecured claims in full on the effective date of the plan, to the extent not paid prior to then.

Any remaining cash will remain with the debtors for the ultimate benefit of JP Lease, the only remaining creditor and the sole equity holder of each of the debtors.

Tokyo-based JP Lease Products & Services offers financial services based on a financial scheme combining the borrowings from financial institutions and funds to manage valuable assets including aircraft, ships, containers for maritime transportation, and solar power generation equipment. The debtors are sister companies that were each formed for the purpose of acquiring and leasing an Airbus A350 aircraft. The JPA units filed bankruptcy on Dec. 17, 2021 under Chapter 11 case number 21-12075.

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