In the event that the operator is in financial
difficulties, a financier can take a number of steps to protect its
position.
Information
The receipt of up-to-date, accurate and complete financial
information is critical to the financier's decision of whether
or not to continue to support a turnaround effort.
Undertakings
A financier might want to consider obtaining from the operator a
range of undertakings including: (1) undertakings to preserve the
relevant aircraft and maintain its value (since the value of the
financier's security is dependent on the value of the
underlying asset); and (2) undertakings to keep the relevant
aircraft within the jurisdiction of the English court or that of
other jurisdictions considered by the financier to admit
straightforward enforcement of its security or which have
"friendly" insolvency regimes.
