Two restructuring deals that Sidley advised on have been honored at the Airfinance Journal 2021 Awards. Avianca Holdings S.A.'s restructuring has been recognized as “Airline Restructuring Deal of the Year.” The deal was also a finalist in the “Latin America Deal of the Year” category. Further, Philippine Airlines’ pre-negotiated Chapter 11 cross-border restructuring won the “Asia-Pacific Deal of the Year” award. The annual ceremony celebrates the best-in-class airline, lessor, and OEM financings that closed in the previous year, as well as the organizations and teams that played central roles in the deals.
Sidley represented United Airlines, Inc. as a co-lender in connection with an approximately US$2 billion dollar debtor-in-possession financing for Avianca in its Chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of New York. Sidley also represented United in amending and extending certain Alliance Agreements and other agreements with Avianca and in negotiating the terms of an equity conversion and commitment agreement and plan of reorganization with Avianca and other key stakeholders in the Chapter 11 Case. Under Avianca’s Chapter 11 plan of reorganization, United agreed to convert its DIP loans into new equity in reorganized Avianca and amend and extend its long-term Alliance Agreements and code share arrangements with the airline. The Sidley team was led by Michael G. Burke and Kevin P. Lewis and included Andrew P. Propps and Eduardo Marquez Certucha.
A Sidley team led by Michael G. Burke counseled GE Capital Aviation Services (GECAS) in connection with the pre-arranged Chapter 11 cases of Philippine Airlines Inc. (PAL). GECAS, along with certain of PAL’s other major shareholders, negotiated a consensual plan of reorganization that permitted PAL to emerge from Chapter 11 in less than five months and resulted in PAL reducing its debt by more than US$2 billion.