Aviation partner Stewart Herman recently spoke with GlobalCapital regarding orders currently being circulated by investment banks to not fund any committed debt transactions in the aircraft sector due to market volatility in the wake of the COVID-19 pandemic. This includes all ABS deals.

The situation came to a head when a recent "multi-aircraft commercial debt financing deal" was called to a halt because the lender refused to fund the transaction, even though they would potentially face a lawsuit for not following through. "I know there were ABS deals in the pipeline, some in the beginning stages and some further along, but investment banks are hitting the pause button," said Stewart. "If sponsors tried to push ahead, they just wouldn't get anywhere with an investor community that has no obligation to fund."

Read "Bankers Get the Orders to Steer Clear of Aircraft ABS" in its entirety.