Chapman’s "Bankruptcy and Aircraft Finance" handbook details certain special rights afforded aircraft creditors and some of the strategies employed. With the airline industry suffering devastating losses as a result of the COVID-19 pandemic, we hope this will be a useful resource for creditors.
Given the current economic climate, a creditor would be wise to:
- Take a close look at available rights and remedies under their aircraft agreements
- Determine which group of creditors might control remedies in the deal
- Establish communications with other holders in the relevant transaction and creditors in other similar transactions
- Obtain as much information as possible on the maintenance condition of each aircraft in the transaction
- Discuss potential creditor’s rights scenarios with legal counsel and financial advisors
This handbook was originally published by Chapman and Cutler LLP in April 2020, and was reposted by the Harvard Law School Bankruptcy Roundtable in its May 5, 2020 issue.