Do you have an up-to-date Aircraft Borrower Default Procedure Checklist?

//Do you have an up-to-date Aircraft Borrower Default Procedure Checklist?

Do you have an up-to-date Aircraft Borrower Default Procedure Checklist?

Unfortunately, when a material borrower default occurs, the financing institution is usually the last to learn that there was a problem. AvRisk uses proactive asset management tools to make sure that you have the earliest possible notification that a trouble may be on the horizon, giving you the opportunity to work with your customer to structure the best possible outcome in times of financial distress.

But are you prepared to react immediately to a payment default on an aircraft lease or loan, especially if you have no idea of where the aircraft is currently located? In these situations, time is of the essence and your ability to effectively respond with coordinated action is imperative to mitigating seven figure losses.

In order to effectively gain possession of the aircraft and its records without risk of damage, you need to have a system in place that identifies roles and responsibilities within your organization and outside resources that you can draw on to properly secure your asset and priority position as owner or mortgagee.

If you don’t have the proper processes, procedures and detailed resource contact information, put them in place now! Trying to do so in the midst of a default costs valuable time that you simply do not have when a multi-million dollar, highly mobile asset is at stake.

By |2017-01-23T10:56:58+00:00January 30th, 2015|finance|0 Comments

About the Author:

Bob is co-founder and Managing Director of AvRisk. He has been engaged in aviation finance and consulting for more than 30 years. In addition to his own consulting practice, Bob was Vice President of Business Development for Jet Support Services Inc (JSSI) and held Director of Finance or Portfolio Management positions with Boeing Capital Corporation, Bombardier Aerospace, GMAC, CMI Corporation, Michigan National Leasing Corporation and the National Bank of Detroit. Bob earned a BS Degree in Accountancy at Western Michigan University and a MBA in Finance from the University of Detroit. He has been a Guest Lecturer at Embry-Riddle Aeronautical University and Michigan State University and an Instructor of Corporate Finance for Davenport University.

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