Nordic Aviation can buy airplane with estate funds, over objections

Chicago, May 4 – Nordic Aviation Capital A/S has permission to use estate funds to satisfy the outstanding balance for one of the “soft delivery” aircraft bearing MSN 1416, which is part of an existing sale and purchase agreement, according to a final order from the U.S. Bankruptcy Court for the Eastern District of Virginia.

The ad hoc group of secured lenders had objected to a transfer of funds to non-debtor affiliates, especially so close to the company’s emergence from Chapter 11, which is anticipated for early May.

A final hearing was held on Tuesday to approve the motion.

The court found the transfer of funds in the best interests of the debtors’ estates, their creditors and other parties in interest.

The funds are going to be transferred to NAC Aviation 39 Ltd.

As a condition of the transfer of funds, NAC will need to execute a joinder to the NAC DAC DIP credit agreement as guarantor.

The entity shall be deemed to be a DIP non-silo guarantor and shall be treated as such under the DIP facility documents.

The funds are only to be used to pay the outstanding purchase price of the aircraft.

The Billund, Denmark-based aircraft leasing company filed bankruptcy on Dec. 17 under Chapter 11 case number 21-33691.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.