Copying and distributing are prohibited without permission of the publisher
The lenders that get to decide Allco Aviation's fate
21 July 2009
Allco Aviation’s lenders have the right to approve any new manager – so who are they?
Read more:
Allco Aviation; HNA Group; Bravia Capital; Bank of Scotland; Military Superannuation Fund of Australia
While finance is a key function for every aircraft lessor, few businesses have been as dominated by the financiers as Allco. Allco’s finance and legal teams in Sydney felt very comfortable dealing with complicated structures. The portfolio reflects this.
“Allco was really a structured finance arranger masquerading as a lessor,” says one aircraft lessor who bid for the company when it was sold.
Each of Allco’s aircraft was financed through separate bankruptcy-remote special purpose vehicles (SPVs). Each SPV typically had five or six different finance tranches.
Deals had equity, junior debt, mezzanine debt, senior debt and, often, super senior receivable lenders. Some individual transactions had 25 participants.
Allco’s finance team looked at each transaction and broke them down into...
Access to this content is denied because you are not logged in. Please login to view this content
Already have an account?
Subscribe
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Free trial
Taking a free trial will give you access to the current issue for two weeks (excluding
some surveys and articles). Start your free trial today.
