RNC Legal secures landmark aircraft financing deals amid India’s aviation growth

The first major transaction which became Deal of the Year was handled by MSI's New Delhi law member RNC Legal during the last quarter of 2023 along with Clifford Chance. We advised five major Banks which financed the acquisition of six A350-900s. The total list price of each Aircraft is more than US$300m. This became a landmark transaction because it is the first one through India’s GIFT City, where new ground was broken and after preliminaries, a term sheet agreed and documents negotiated and ultimately executed and followed through filings. We advised at all stages.

In a similar vein is a continuing transaction for a large number of A321s for IndiGo. Each of them with a list price of US$120m where again we are acting for several major Banks, Insurance companies, Book runners, Facility agents and others.

Again staying with the Aviation sector, we have been involved with pre-negotiating and signing pre-delivery payments for Akasa for acquisition of Boeings. There are significant changes in India’s regulatory policy, banking, insolvency regime, etc. India is experiencing a boom in industry and business and huge infrastructure is being added. It is expected that India’s population which currently stands at 1.4 billion will stabilize at 1.6 billion in the next two years. In certain states, the population has started declining.

GoFirst’s Aircraft De-registration amid Insolvency Process

In a ruling of national and international interest, RNC represented lead Lessors before the Delhi High Court. The Court ordered the Directorate General of Civil Aviation (DGCA) to process deregistration of grounded airline Go First’s entire 54 aircraft fleet sought by various lessors within five days and facilitate their export.

It also authorized the lessor petitioners to undertake maintenance of the grounded aircraft till their deregistration and export, while restraining the Resolution Professional (RP) from entering the aircraft and removing its parts and documents. The Court set aside the letters of communication issued by the DGCA to various lessors in May last year where it put into abeyance their de-registration applications.

This followed the National Company Law Tribunal’s (NCLT) decision on May 10 to admit Go First’s plea for voluntary insolvency and consequential moratorium prohibiting adverse actions by its lessors and debtors. Following this, 14 lessors moved the Delhi High Court