Published on September 24th, 2021 | by Alan Dwyer0
NAC Appoint New President as Restructuring Takes Place
Nordic Aviation Capital (NAC) has announced the appointment of Norman C.T. Liu as incoming President and makes substantial progress in its restructuring, including the agreement on outline terms with its largest senior lender groups on a holistic transaction to strengthen capital structure and position the Company for long-term growth and success. Mr Liu will take up the position with immediate effect. He is highly experienced in the aviation leasing business having been President of GECAS between 2009 and 2016, and its Chairman in 2016.
Commenting on his appointment, Norman Liu said, “I look forward to working with NAC’s global team and customer base in these highly challenging times. We have much work to do on restoring the balance sheet and portfolio but I’m confident that we will be well-positioned as the industry recovers from the pandemic.”
The $500m of additional capital contemplated under the Framework will be provided to NAC in conjunction with its restructuring and be available to support liquidity and pursue growth in purchasing aircraft. This will help NAC retain industry leadership in regional aviation and expand into other narrowbody aircraft types to diversify its product offering and leverage its platform and scale. In consultation with some of its largest creditors, NAC has engaged an internationally recognized executive search firm to identify potential director candidates for the Company’s post-restructuring Board. NAC has agreed the outline terms of a Framework with its largest creditor groups. This Framework envisages a comprehensive restructuring of its debt obligations and the Company raising $300 million in additional capital through a new equity rights offering and a new $200 million revolving credit facility. The Framework remains subject to the finalization of detailed terms, the formal approval processes of the various parties and implementation.
In results for the financial year ending on 30th June 2021, NAC entered into agreements for short-term rental deferrals with 25 customers on over 100 leases. NAC recognised lease revenue of $642 million, a decline of 15% year on year. NAC generated cash flow from operations of $225 million and made investments of $98 million for the year and closed the fiscal year with $233 million in unrestricted cash.