Tradewind’s Post

The sale and leaseback model is currently the most discussed option for airlines seeking long-term liquidity. With limited government intervention, this approach offers a vital path to securing necessary funds and maintaining operations. Read more here: https://zurl.co/PyNh #AviationFinance #SaleAndLeaseback #CorporateServices

Azul Downgraded to ‘SD’ by S&P Following Debt Exchange - Azul (Brazil) has had its credit rating downgraded to ‘SD’ (Selective Default) by S&P Global Ratings (US) after completing a distressed debt exchange. The downgrade reflects S&P’s classification of Azul’s recent debt restructuring as distressed, rather than a conventional market transaction. - https://lnkd.in/dhFwZjav

Azul Downgraded to ‘SD’ by S&P Following Debt Exchange - Azul (Brazil) has had its credit rating downgraded to ‘SD’ (Selective Default) by S&P Global Ratings (US) after completing a distressed debt exchange. The downgrade reflects S&P’s classification of Azul’s recent debt restructuring as distressed, rather than a conventional market transaction. - https://lnkd.in/dhFwZjav

HNA Holdings to Settle Debts with Affiliates Using Assets - HNA Holdings (China) has announced plans to settle outstanding debts with several of its affiliated entities, including Tianjin Airlines, Capital Airlines, Suparna Airlines, West Air, Deer Jet, Tianjin Cargo, and Grand China Air. The settlement will involve the use of assets from these affiliates to address their financial obligations. - https://lnkd.in/d4xKcXb5

#SpiceJet’s Landmark Settlement with Genesis: A Step Toward Financial Stability ✈️💼 SpiceJet Limited , has successfully resolved its long-standing $16 million dispute with aircraft lessor Genesis through a well-negotiated settlement. This agreement is a major milestone in the airline's ongoing efforts to restore financial health and operational stability. The Settlement Details: 1. SpiceJet will pay Genesis $6 million in cash. 💰 2. Genesis will acquire $4 million worth of equity in SpiceJet at a valuation of ₹100 per share. 📈 This deal underscores SpiceJet’s commitment to addressing its liabilities while reinforcing its balance sheet. Both parties have also agreed to withdraw all ongoing litigations and disputes, provided the settlement terms are fulfilled. Strategic Focus on Financial #Restructuring 🔧 This settlement is part of SpiceJet’s broader plan to reduce financial liabilities and stabilize operations. In the last few months, the airline has successfully resolved disputes with several other lessors, including ●Horizon Aviation ●Engine Lease Finance Corporation ●Aircastle ●Wilmington Trust SP ●Shannon Engine Support Limited, ●Export Development Canada. In a similar move in #September 2024, #Carlyle Aviation converted $30 million of lease arrears into equity in SpiceJet, again at ₹100 per share. These agreements showcase a clear trend of stakeholders placing trust in the airline’s turnaround efforts. 🔄 #Improved Credit Rating and Financial Confidence 📊 SpiceJet’s ongoing restructuring efforts have been acknowledged by Acuité Ratings & Research Limited, which recently upgraded the airline’s credit rating by four notches. This significant improvement highlights SpiceJet’s focus on operational efficiency and debt reduction, fostering greater confidence among investors and lessors. 📈 #Future Growth and Expansion Plans 🚀 Chairman and Managing Director Ajay Singh has emphasized that these settlements are critical steps in reducing liabilities and focusing on sustainable growth. SpiceJet has ambitious plans: 1. To operate 35 aircraft by March 2025. ✈️ 2. To scale operations to 70 aircraft by FY26. ✈️ 3. To expand to 100 aircraft by FY27 with a goal of achieving cash-flow positivity. 💵 #Commitment to Stability and Sustainability 🌱 Ajay Singh remarked, “This settlement with Genesis is another crucial step toward financial stability. By reducing liabilities and strengthening our balance sheet, we are paving the way for long-term growth and sustainability in a highly competitive market.” #SpiceJet #AviationIndustry #FinancialStability #DebtResolution #AviationNews #OperationalResilience #StakeholderConfidence #StrategicPartnership #Growth #BusinessNews #restructuring

Bernstein’s latest blog analyzes the advantages of contractual #aviation leases, which offer strong cash flow and income potential. Get the details here:

ABS secondary trading fills new issuance gap Aircraft lease collections on asset-backed securitisations (ABS) issued pre-Covid-19 are improving but are still down versus 2019 levels, Hugh Davies reports. “The improved collection situation has been beneficial to pre-Covid deals, and as leases turned over in 2023 and 2024, the servicers could renegotiate those leases higher," said Evan M Wallach, co-president and co-chief executive officer of Global Airfinance Services during an ISTAT webinar. “The bad news is that they are still significantly below when the bonds were issued...The question is whether there is a window where they will go higher or whether they will peak at this level,” he added. To find out the impact on the debt service coverage ratios (DSCR) of ABS deals, go to Airfinance Global https://lnkd.in/eFYSWdsA #aviationfinance #capitalmarkets #ABS

HNA Holdings to Settle Debts with Affiliates Using Assets - HNA Holdings (China) has announced plans to settle outstanding debts with several of its affiliated entities, including Tianjin Airlines, Capital Airlines, Suparna Airlines, West Air, Deer Jet, Tianjin Cargo, and Grand China Air. The settlement will involve the use of assets from these affiliates to address their financial obligations. - https://lnkd.in/d4xKcXb5

✈️ #ISHKAAviationInvestivalNorthAmerica is happening in #NewYork now!   Today, our Managing Director, Christian Schloemann, shared valuable insights under the topic "View from the C-Suite – The lessor perspective."     Read below for a summary of our MD’s view on the state of the aviation leasing market, highlighting key trends and strategic approaches. 💭   🔹 Global Market Demand: Christian emphasizes that the global fleet is set to double over the next 20 years, with the industry's resilience clearly demonstrated by navigating through COVID.   🔹 Strategic Focus: In his view, #teamGOAL is committed to structuring transactions that maximize investor benefits, with a special emphasis on new aircraft and sale-and-leaseback (SLB) deals, leveraging our unique structuring expertise.   🔹 Financing Evolution: As he notes that as some major financial institutions exit the market, we welcome alternative lenders understanding the risks, thereby creating favorable conditions for lucrative transactions.   🔹 Investor Appetite: He presented to the audience that diversifying through funds, joint ventures, and deal-by-deal structures allows GOAL to expand deal opportunities, aligning with investor appetite while ensuring robust asset management.   #aircraftleasing #aviation #AviationFinance

Bernstein’s latest blog analyzes the advantages of contractual #aviation leases, which offer strong cash flow and income potential. Get the details here: