Preventing Aircraft Leases From Being Clawed Back in Bankruptcy
Advertisement Structuring and Practice for Aircraft Leases to Prevent Lease Payments From Being Clawed Back in a Lessee Bankruptcy Friday, April 9, 2021 Key Points The risk that prepetition lease payments made by a lessee that is a debtor in a US bankruptcy will be clawed back from an aircraft lessor can be reduced if: the lease is a true lease rather than a disguised secured loan or finance lease one or both of basic rent and maintenance reserves are payable in advance (i.e., at the beginning of a rent period rather than at the end) basic rent and maintenance reserves are payable m...
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