Aircraft rental company NAC takes over a large number of Gecas’ big hitters
Limerick-based aircraft rental company Nordic Aviation Capital (NAC) has appointed a number of former senior Gecas executives to leadership positions as it leads a U.S. bankruptcy process that will see lenders owed $ 6 billion (5 billion euros) to take control of the company.
ordic Aviation Capital is the largest regional aircraft lessor in the world, with a fleet of over 500 jets and turboprop engines.
But it has been hit hard by the pandemic, forcing it to first rely on shareholders in 2020 to back up its balance sheet with additional capital.
Last year, former Gecas chief executive Norman Liu was parachuted by lenders as chairman of the NAC.
He was CEO of Gecas from 2009 to 2016, and its chairman in 2016. He had been an advisor to NAC for more than two years.
New appointments at NAC include Mike Jones, who has been named executive vice president of global marketing. He was previously Executive Vice President of Emerging Markets at Gecas.
Gecas was acquired last year by Dublin-based rental company AerCap, creating by far the world’s largest aircraft rental company.
David Farrell, formerly of Gecas and predecessor of GPA, also joins NAC. He has worked at BOC Aviation since 2006, where he was Risk Director. At the CNA, he will occupy the same role.
Colin Joyce joins NAC from JLPC Ireland, a Japanese rental services company. He was director of investments there. He previously worked for Gecas for 15 years.
At NAC, he will lead marketing operations including transaction pricing, structured finance and aircraft trading.
Ross McKeand will be the CNA’s Senior Vice President for Specialty Markets and Fleet Planning. He previously worked at Gecas, Airbus and Bombardier. Prior to joining NAC, he was Managing Director of ICBC Leasing’s Market Planning Department.
Nordic Aviation Capital confirmed last month that it had entered Chapter 11 bankruptcy protection proceedings in the United States as part of a finalized deal with a majority of lenders.
the Independent Irish exclusively reported in March last year that NAC was considering a Chapter 11 process in the United States as it sought to restructure its debts.
NAC said in December that it had reached a Restructuring Support Agreement (RSA) with its shareholders and lenders who own more than 73% of the lessor’s $ 6.3 billion in debt.
NAC said RSA “envisions a consensual and comprehensive restructuring” of NAC’s obligations, including converting a substantial amount of the group’s debt into equity, with an injection of $ 537 million in additional capital via a new equity offering of $ 337 million and a new revolving credit facility of $ 200 million.
NAC has also secured an additional $ 170 million financing facility for debtors in possession of its existing creditors to help fund operations during the Chapter 11 process.
NAC recorded a loss of $ 2.3 billion in the 12 months leading up to the end of June of last year.
This included the depreciation of aircraft and other intangible assets. It recorded rental income of $ 642 million in its most recent fiscal year, down 15% year-over-year.