First Day Declaration
JPA No. 111 Co. Ltd. and JPA No. 49 Co. Ltd., Tokyo-based specialty purpose vehicles formed to acquire and lease Airbus A350 aircraft, filed for chapter 11 protection this morning in the Bankruptcy Court for the Southern District of New York. The company reports $100 million to $500 million in both assets and liabilities. The debtors are represented by Togut, Segal & Segal in New York and are also working with K&L Gates. The case number is 21-12075. The case has been assigned to Judge David S. Jones.
JP Lease Products & Services president and CEO Teiji Ishikawa says in the first day declaration that the debtors “were forced to file these Chapter 11 Cases because their senior mortgage holder, FitzWalter Capital Partners (Financial Trading) Limited (‘FitzWalter’), is engaging in an out-of-sight foreclosure of the Debtors’ assets with the singular goal of cashing out their claims without concern” for the debtors junior creditors or equity holder. The debtors say that they believe there is “sufficient value to provide a return to all creditors” if the debtors sell their assets - state-of-the-art, next-generation, wide body A350 aircraft - in chapter 11.
The debtors’ prepetition capital structure includes various aircraft financing loans, and their five largest secured creditors are listed below:
The debtors are wholly-owned subsidiaries of JP Lease Products & Services Co. Ltd., which offers financial services based on a financial scheme combining the borrowings from financial institutions and funds to manage valuable assets including aircraft, ships, containers for maritime transportation and solar power generation equipment. JP Lease is a direct wholly-owned subsidiary of Japan Investment Adviser Co. Ltd., which creates and sells financial instruments to investors in Japan through a network of financial institutions, including banks and securities companies and tax and accounting firms.
Reorg First Day will provide a full summary once the first day briefing is complete.