Bank and Debt Advisory

FPG Amentum provides bank & debt advisory in a third party servicer capacity. Originally a subsidiary of HSH Nordbank, then one of the largest players in asset backed aircraft lending, FPG Amentum has been an advisor on debt exposures from day one of its launch in 2005. FPG Amentum welcomes banks and debt investors to use its full-service platform to ensure they obtain first-class real time advice and restructuring support for their aircraft finance activities.

Solution Capabilities

Consulting Services

FPG Amentum’s support to its bank and debt investor customers is based on its commercial understanding of aircraft assets and their technical condition, its understanding of the complexity of airline finances, aircraft leases and financing and its insights into the state and development of the air finance and air transport industries through hands-on day-to-day involvement in transactions and allocation of time and resources to market analysis and industry research. We support our bank and debt investor customers in structuring and analysing new loan transactions, in reviewing the risk profile of existing loan assets, in developing and evaluating restructuring options for distressed cases (see also Restructuring Services) and in forming strategic views on the market.

FPG Amentum’s services are 100% tailor-made to the requirements of its customers. We draw on the key cross-functional expertise of our team, covering the commercial, technical, legal and tax aspects of our projects and leverage our extensive network in the air finance community. The following are examples of services FPG Amentum typically provides:

Aircraft Maintenance Life and Cost Analysis
Assessment of the technical maintenance life of aircraft and maintenance reserve adequacy, forecasts of timing and cost of future maintenance events and analysis of implications for lender exposure over time.
Aircraft Technical Condition and Records Analysis
Assessment of the physical condition of aircraft, completeness and standard of aircraft records keeping and technical compliance with lease and loan agreements. Estimate of cost for deficiency rectification and impact on loan collateral value. Work with technical departments in airlines and monitoring to address and correct aircraft, records and process deficiencies of relevance to the lender.
Securing Aircraft Records
Management of aircraft records scanning, compilation, and rectification. Pro-actively as a precaution when the lender is concerned about the going-concern of the airline and in a default scenario when the airline has ceased or is about to cease operations.
Aircraft Market Assessments
Real time assessment of market conditions, tradability and pricing of specific aircraft.
Business Plan Review
Assessments of airline and lessor business and financial plans.
Credit Analysis
Credit assessments of airline and lessor customers and assistance in developing credit differentiation models.
Analysis of Distressed Transactions
Providing and evaluating all reasonable options for maximizing returns from aircraft collateral. Analysis of forced loan extensions to see if they are viable in light of the collateral situation and the costs and risks of taking an active approach.
Aviation Industry Macro Trend Analysis
Industry research to help banks and debt investors understand key trends in the industry such as the effects of new technology, production rate and order book changes, new regulation and changes in the competitive landscape, in economic macro factors and in the sources of aircraft finance.
Proactive Monitoring
Continuous monitoring of the performance of debtors in meeting aircraft technical and other requirements under a loan.
Sale and Lease Negotiation Support
Advice and representation in negotiations of commercial and technical terms with potential lessees and buyers.
Standby Restructuring Agent
FPG Amentum stays at the ready to assist financial institutions in restructuring transactions or repossessing and remarketing collateral as necessary.

Restructuring Services

For banks and debt investors one of the worst things in a loan transaction is to discover that it cannot be re-paid according to its terms. For many lenders the restructuring process is fraught with difficulties as they do not have the capabilities in-house to develop and evaluate strategic options and to take practical action from repossession to transition or disposal of the aircraft. For these difficult situations, let FPG Amentum be your one-stop shop to provide you with all the expertise that is needed to arrive at the best solution.

FPG Amentum has been involved in numerous work-outs and repossessions of aircraft and takes a proactive approach to evaluating potential work-outs so that the lender is ready to take action at the earliest opportunity. In fact, in almost every instance where FPG Amentum has repossessed aircraft, it has been the first to gain control of the aircraft assets and records. This includes successful repossessions from jurisdictions such as China, India, Indonesia, Nigeria and Russia.

FPG Amentum supports its bank and debt investor customers to the successful completion of the restructuring with the redeployment of the aircraft on lease or the sale of the asset. We provide our restructuring assistance on a confidential basis and welcome enquiries from bank and debt investors to discuss their restructuring requirements.

  • At FPG Amentum, we work with our customers to understand their goals and to develop a feasible strategy and plan that most closely matches their goals.
  • We evaluate the loan collateral and the contractual situation to ensure all potential viable options are considered.
  • We provide a real-time market assessment based on our own experience in the market as to the marketability of the asset either on a lease basis or in a sale or part-out.
  • We thoroughly analyse and test the assumptions in any restructuring plan or borrower business plan to ensure restructurings are reasonable and likely to succeed.
  • We provide full repossession management including a dedicated team covering all technical, legal, credit and commercial functions as well as project management and coordination of service providers such as legal counsels, tax advisors, MROs, CAMOs and flight crew organizations.
  • Our marketing team is dedicated to finding the best possible lease or sale solution taking into account the risk-reward parameters of the customer.