Aviation Update: Common themes in times of crisis

The Aviation (Enforcement and Recovery) team has been advising clients on issues arising from the current crisis. Three main themes emerge from the current challenges in the airline sector:

1.) Airline insolvency risk.  A number of leasing companies have claims for unpaid rent and maintenance rent. These claims can be pursued by:

  • applying security deposits and enforcing other security; and/or
  • issuing proceedings in the High Court – which will effectively come to halt if the airline then goes into a formal insolvency process; and/or
  • Instigating insolvency proceedings against the airline; and/or
  • Exercising proprietary rights such as arresting and taking possession of the aircraft, with the assistance of a court order or injunction in the relevant location.

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Insolvency Guide for Lenders, Landlords, Lessees, and Others Dealing with the COVID-19 Crisis

The economic havoc unleashed by the COVID-19 crisis in most sectors of the economy will affect businesses and their employees, servicers, customers, and others for the foreseeable future. Among those that are directly and critically affected are banks and other lenders, commercial landlords and tenants, restaurants, and the travel and hospitality industries. All of these areas will see an increase in bankruptcy filings and other insolvency proceedings in the near term. Here is a short guide for some of the issues that will arise in the coming months. Read more…

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Don’t be a stranger

Lots of professional and personal colleagues have heard me and others compare restructuring lawyers to emergency room doctors and our practice to medical treatment. By way of further analogy, emergency rooms see patients in various phases of physical and emotional distress, ranging from calm or concerned, to panicked, to defensive or in denial. (I know I have taken liberties and skipped a few points on the spectrum.) Sometimes, on the defensive-denial end of the scale, when patients think they least need it, doctors can do the most good through early intervention and treatment. My interface with new clients oftentimes mirrors the doctor-patient relationship. Read more…

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