Aircastle (AYR)

 

Although we have the right to repossess the aircraft and to exercise other remedies upon a lessee default, repossession of an aircraft after a lessee default would result in us incurring costs in excess of those incurred with respect to an aircraft returned at the end of the lease. Those costs include legal and other expenses of court or other governmental proceedings (including the cost of posting surety bonds or letters of credit necessary to effect repossession of aircraft), particularly if the lessee is contesting the proceedings or is in bankruptcy, to obtain possession and/or de-registration of the aircraft and flight and export permissions. Delays resulting from any of these proceedings would also increase the period of time during which the relevant aircraft is not generating revenue. In addition, we may incur substantial maintenance, refurbishment or repair costs that a defaulting lessee has failed to pay and that are necessary to put the aircraft in suitable condition for re-lease or sale and we may need to pay off liens, taxes and other governmental charges on the aircraft to obtain clear possession and to remarket the aircraft effectively. We may also incur other costs in connection with the physical possession of the aircraft.

 

We may also suffer other adverse consequences as a result of a lessee default and the related termination of the lease and the repossession of the related aircraft. Our rights upon a lessee default vary significantly depending upon the jurisdiction and the applicable laws, including the need to obtain a court order for repossession of the aircraft and/or consents for de-registration or re-export of the aircraft. When a defaulting lessee is in bankruptcy, protective administration, insolvency or similar proceedings, additional limitations may apply. Certain jurisdictions will give rights to the trustee in bankruptcy or a similar officer to assume or reject the lease or to assign it to a third party, or will entitle the lessee or another third party to retain possession of the aircraft without paying lease rentals or performing all or some of the obligations under the relevant lease. Certain of our lessees are owned in whole or in part by government-related entities, which could complicate our efforts to repossess our aircraft in that government’s jurisdiction. Accordingly, we may be delayed in, or prevented from, enforcing certain of our rights under a lease and in re-leasing the affected aircraft.

 

If we repossess an aircraft, we will not necessarily be able to export or de-register and profitably redeploy the aircraft. For instance, where a lessee or other operator flies only domestic routes in the jurisdiction in which the aircraft is registered, repossession may be more difficult, especially if the jurisdiction permits the lessee or the other operator to resist de-registration. Significant costs may also be incurred in retrieving or recreating aircraft records required for registration of the aircraft and obtaining a certificate of airworthiness for the aircraft.

 

 

Although we have the right to repossess the aircraft and to
exercise other remedies upon a lessee default, repossession of
an aircraft after a lessee default would result in us incurring
costs in excess of those incurred with respect to an aircraft
returned at the end of the lease. Those costs include legal and
other expenses of court or other governmental proceedings
(including the cost of posting surety bonds or letters of credit
necessary to effect repossession of aircraft), particularly if
the lessee is contesting the proceedings or is in bankruptcy, to
obtain possession
and/or
de-registration of the aircraft and flight and export
permissions. Delays resulting from any of these proceedings
would also increase the period of time during which the relevant
aircraft is not generating revenue. In addition, we may incur
substantial maintenance, refurbishment or repair costs that a
defaulting lessee has failed to pay and that are necessary to
put the aircraft in suitable condition for re-lease or sale and
we may need to pay off liens, taxes and other governmental
charges on the aircraft to obtain clear possession and to
remarket the aircraft effectively. We may also incur other costs
in connection with the physical possession of the aircraft.

 

We may also suffer other adverse consequences as a result of a
lessee default and the related termination of the lease and the
repossession of the related aircraft. Our rights upon a lessee
default vary significantly depending upon the jurisdiction and
the applicable laws, including the need to obtain a court order
for repossession of the aircraft
and/or
consents for de-registration or re-export of the aircraft. When
a defaulting lessee is in bankruptcy, protective administration,
insolvency or similar proceedings, additional limitations may
apply. Certain jurisdictions will give rights to the trustee in
bankruptcy or a similar officer to assume or reject the lease or
to assign it to a third party, or will entitle the lessee or
another third party to retain possession of the aircraft without
paying lease rentals or performing all or some of the
obligations under the relevant lease. Certain of our lessees are
owned in whole or in part by government-related entities, which
could complicate our efforts to repossess our aircraft in that
government’s jurisdiction. Accordingly, we may be delayed
in, or prevented from, enforcing certain of our rights under a
lease and in re-leasing the affected aircraft.

 

If we repossess an aircraft, we will not necessarily be able to
export or de-register and profitably redeploy the aircraft. For
instance, where a lessee or other operator flies only domestic
routes in the jurisdiction in which the aircraft is registered,
repossession may be more difficult, especially if the
jurisdiction permits the lessee or the other operator to resist
de-registration. Significant costs may also be incurred in
retrieving or recreating aircraft records required for
registration of the aircraft and obtaining a certificate of
airworthiness for the aircraft.

 

 

Although we have the right to repossess the aircraft and to exercise other remedies upon a lessee default, repossession of an aircraft after a lessee default would result in us incurring costs in excess of those incurred with respect to an aircraft returned at the end of the lease. Those costs include legal and other expenses of court or other governmental proceedings (including the cost of posting surety bonds or letters of credit necessary to effect repossession of aircraft), particularly if the lessee is contesting the proceedings or is in bankruptcy, to obtain possession and/or de-registration of the aircraft and flight and export permissions. Delays resulting from any of these proceedings would also increase the period of time during which the relevant aircraft is not generating revenue. In addition, we may incur substantial maintenance, refurbishment or repair costs that a defaulting lessee has failed to pay and that are necessary to put the aircraft in suitable condition for re-lease or sale and we may need to pay off liens, taxes and other governmental charges on the aircraft to obtain clear possession and to remarket the aircraft effectively. We may also incur other costs in connection with the physical possession of the aircraft.

 

We may also suffer other adverse consequences as a result of a lessee default and the related termination of the lease and the repossession of the related aircraft. Our rights upon a lessee default