Aircraft Finance Trust holders supply needed consents for five series

By Susanna Moon

Chicago, June 22 - Aircraft Finance Trust said it received the needed consents from holders of 74.2% of its $699,562,974.40 total of class A-1 notes, class A-2 notes, class B notes, class C notes and class D notes.

The solicitation expired at 5 p.m. ET on June 21. It was pushed back from June 14 and began on May 17.

As reported, the Wilmington, Del.-based issuer sought consents from holders of at least a majority of the notes to:

• Allow it to sell or otherwise dispose of aircraft based upon a controlling trustee's resolution without having to comply with the current restrictions;

• Permit the controlling trustees to set from time to time the concentration limits and permitted countries for lessees without having to comply with the current geographical, lessee and other restrictions;

• Reduce the cost of hull and other insurance to be at least equal to the adjusted base value of the aircraft rather than the current note target prices;

• Eliminate the requirement that the trust obtain rating agency confirmations prior to taking certain actions under the indenture;

• Permit the company to establish reserves for expenses anticipated to be incurred during the next six months and provide the trust with the flexibility to incur certain hedging expenses during the period between payment dates; and

• Make certain other changes of a technical or conforming nature to effect the foregoing.

The trust added that it would not pay any fees.

The solicitation agent was Jefferies & Co., Inc. (attn: Evan Wallach at 203 363-8285 or ewallach@jefferies.com or James Palen at 203 363-8286 or jpalen@jefferies.com). The tabulation agent and the information agent was Global Restructuring Services, Inc. (attn: John Baxter at 212 644-1772).

Phoenix American Financial Services, Inc. (formerly ReSource/Phoenix, Inc.) is the administrative agent, and Deutsche Bank Trust Co. Americas is the trustee.

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