AeroCentury Corporation Files for Bankruptcy Protection
Posted on 03/30/2021
Due to the massive decrease in air travel during the COVID-19 pandemic, Aircraft leasing company AeroCentury Corporation filed for Chapter 11 bankruptcy protection in Delaware. AeroCentury Corporation plans to sell aircraft assets during the court restructuring. AeroCentury has entered into a stalking horse agreement for Drake Asset Management Jersey Limited, its sole secured lender. The sale is subject to higher to bids. Drake Asset Management Jersey Limited is a specialist investment business focused on the regional aviation sector. Falko Regional Aircraft Limited (“Falko”) acts as the servicer to Drake.
By the third quarter of 2020, AeroCentury’s revenues had plunged 85% from a previous year. AeroCentury Corporation has listed assets of about US$ 121 million and debt of nearly US$ 125 million as of September 30, 2020 according to its bankruptcy petition.
On October 30, 2020, Drake Asset Management Jersey Limited bought all of the indebtedness of AeroCentury held by the lenders (MUFG Union Bank, N.A.) under the Fourth Amended and Restated Loan and Security Agreement dated as of May 1, 2020, totaling approximately US$ 87.9 million, as well as all of the company’s indebtedness to MUFG Bank, Ltd. (approximately US$ 3.1 million) that arose from the termination of interest rate swaps entered into with respect to such loan agreement indebtedness. On the same day, AeroCentury Corporation entered into Amendment No. 1 to the Loan Agreement with Drake and UMB Bank, N.A., the replacement Administrative Agent under the loan agreement, to amend the loan agreement.
Keywords: Mitsubishi UFJ Financial Group, Inc.
