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Allco exlusive: Lenders reject Bravia and KV
03 July 2009
Four banks and funds have told Allco Aviation’s receivers that they want another company to buy the aircraft leasing company. HNA Group and Bravia are still committed to buying the company but there is support for third place Macquarie Airfinance to buy the Allco subsidiary.
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Allco Aviation
KV Aviation
HNA Group
Bravia
Macquarie Airfinance
Bank of Scotland
Military Fund of Australia
At least four lenders have told the receiver to Allco Aviation that they do not want either Bravia Capital and HNA Group or KV Aviation to manage their aircraft.
Bank of Scotland, which has interests in 29 aircraft in the 68 aircraft portfolio, and the Military Superannuation Fund of Australia, a significant investor in other aircraft, have formally written to Ferrier Hodgson to say that they will not support either group.
Although Bravia has formally won the auction for Allco Aviation, the subordinated aircraft lenders need to approve any new servicer. In theory every lender participating in each aircraft has to agree to any transfer but lawyers believe that a majority decision could be enough to move aircraft over. This can only be proved through litigation. There were 26 non-recourse lenders in total.
Bank of Scotland and Military Fund of Australia together hold a majority stake in six aircraft and...
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