A scheme of arrangement for Irish-based aircraft lessor Nordic Aviation Capital (NAC) with its creditors has been approved by the High Court.
NAC had sought to enter into a scheme with its lenders due to the dire effects of the Covid-19 pandemic on the aviation industry.
The judge approved the scheme, which will allow the group to continue to operate. Noting the level of approval and the lack of opposition to the proposal from creditors, Mr Justice David Barniville said he was satisfied he had the jurisdiction to make the order sought, giving international recognition of the scheme, and that the scheme was "fair and equitable".
The NAC group of companies is the largest lessor of aircraft to regional airlines, and the fifth largest aircraft lessor in the world, and employs over 100 people at its Limerick headquarters. It owns around 500 aircraft.
The group sought to enter into an arrangement with its lenders due to the impact of the covid19 pandemic. The court heard that unless the scheme went ahead it feared that it would run out of cash by the end of July.
The bulk of the group's customers sought various concessions on its aircraft leasing agreements. The pandemic had also resulted in a substantial decrease on the amounts paid to the group, the court also heard.
Under the terms of the scheme, millions in payments due to its lenders involving over €5bn of debt over the next six to 12 months will be put on hold.
Other aspects of the scheme include that NAC's shareholders injecting $60m (€52.4m) into the group, and NAC reducing non-essential expenditure.
Lyndon MacCann SC, appearing with Kelly Smith for NAC said that there had been overwhelming creditor support for the scheme.
Counsel said well over 90% of secured and non-secured creditors who had attended creditors meetings had voted in favour of the proposals contained in the scheme.