Nordic Aviation units seek approval of $15 million DIP facility

By Sarah Lizee

Olympia, Wash., March 9 – Nordic Aviation Capital A/S debtors NAC Aviation 17 Ltd. and NAC Aviation 20 Ltd. are seeking approval of a $15 million senior secured superpriority delayed-draw term loan facility, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the Eastern District of Virginia.

The lenders are New York Life Insurance Co. and New York Life Insurance Annuity Corp.

Nordic Aviation said the debtors need the additional funding to continue ordinary-course operations without disruption, including payment of customer-related obligations, and bridge to a successful financial structuring.

The debtors are also seeking access to the cash collateral of the lenders.

They are seeking interim access to $4.5 million of the DIP facility.

Interest will be SOFR plus 500 basis points, paid monthly, with a 1% floor on a payment-in-kind basis.

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

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