Plane Repos Ready To Take Flight
- Thread starter USA320Pilot
- Start date
BoeingBoy
Veteran
- Nov 9, 2003
- 16,512
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I'd say that the GE/US deal fits this profile, since it appears they got a pretty good deal....
We sell them 8-10 (I forget the exact number) airplanes and lease them back.
The proceeds from that transaction pays down the "liquidity facility" negotiated in BK 1, making $55 million available, but only with draws of specific amounts at specific times.
About $80 million of loan/lease payments is defered (not forgiven) with interest, IIRC, at LIBOR + 4.25%.
Reduction in engine overhaul costs going forward.
When (if) we exit, they get a convertible note for at least $125 million with interest of LIBOR + 4.25%.
And just like the most recent agreement with the ATSB, there is a list of "global default" events that enable them to pull the plug.
If anyone wants to wade through the agreement, it is Docket #914.
Jim
We sell them 8-10 (I forget the exact number) airplanes and lease them back.
The proceeds from that transaction pays down the "liquidity facility" negotiated in BK 1, making $55 million available, but only with draws of specific amounts at specific times.
About $80 million of loan/lease payments is defered (not forgiven) with interest, IIRC, at LIBOR + 4.25%.
Reduction in engine overhaul costs going forward.
When (if) we exit, they get a convertible note for at least $125 million with interest of LIBOR + 4.25%.
And just like the most recent agreement with the ATSB, there is a list of "global default" events that enable them to pull the plug.
If anyone wants to wade through the agreement, it is Docket #914.
Jim
BoeingBoy
Veteran
- Nov 9, 2003
- 16,512
- 5,865
If you keep up with the court filings, you'll find that only about half the mainline aircraft are settled as far as section 1110 goes - that's the GE deal.
The rest are still up in the air, with extensions to the 1110 deadline agreed to by both parties but no deals with the lessors/EETC holders yet. Seems like those folks just aren't quite ready to roll over and take whatever U wants to dish out.
Jim
[edit by me below]
There is one 737 that the court has approved rejection - N524.
The rest are still up in the air, with extensions to the 1110 deadline agreed to by both parties but no deals with the lessors/EETC holders yet. Seems like those folks just aren't quite ready to roll over and take whatever U wants to dish out.
Jim
[edit by me below]
There is one 737 that the court has approved rejection - N524.