Addisons seals $US3 billion Allco deal for China's HNA Group
Date: 1 February 2010
Author: Jeff Mansfield, Partner
Sydney based law firm Addisons[1] successfully completed the complex $US3 billion acquisition of the Allco aviation business on behalf of its client, HNA Group of China.
The sale of the aircraft portfolio was complex and involved a diverse group of local and international law firms. These included Addisons for HNA Group; Allen & Overy, Allens Arthur Robinson and DLA Piper acting for the lender syndicates; Gilbert & Tobin acting for the Security Trustee; and Corrs Chambers Westgarth acting for the Allco receiver, Ferrier Hodgson.
According to Jeff Mansfield, Addisons' lead partner on the transaction; "We needed to negotiate with 28 financiers in various combinations over the 68 aircraft. Initially there was some hostility to the sale which made the transaction even more complex."
Compounding the complexity was the timing of the deal which came hard on the heels of the global financial crisis. HNA's tender was accepted back in May 2009.
According to Mansfield; "After extensive negotiations, our client HNA Group, convinced the various lender syndicates that it would be the best manager for the portfolio in the future and the deal was finalised in January this year."
Mansfield explained that the 68 aircraft including Boeing and Airbus planes had been leased to a number of airlines including Qantas, British Airways, Singapore Airlines, Emirates and a number of budget airlines. All the aircraft were held in structured financing arrangements which allowed the aircraft portfolio to survive the administration and subsequent liquidation of the Allco Finance Group.
Working with Mansfield was a committed team of Addisons lawyers comprising Li Jean Chew, Renee Shipp and Kylie Mathison.
[1] Note to editors: Addisons is a Sydney based law firm offering a range of high quality specialist legal services. Its key practice areas include corporate, mergers and acquisitions; commercial property; commercial litigation and dispute resolution; competition, trade practices and regulatory; intellectual property, ecommerce and media; insolvency and corporate reconstruction; sports and gambling.