Creditor Advisory for a Regional Airline Lender
Challenge
Through an acquisition and expansion of routes, a regional airline had quickly become the second largest in the region in which it operated. After this initial success, its parent company committed to a large order of new planes, which came at a significant cost. The airline fell short of the aggressive growth projections laid out in its business plan and rapidly started to drain cash and profits.How we helped
Riveron was appointed by the bank that served as the primary provider of capital and operational leases for the new aircraft fleet after the airline missed payments. We conducted a comprehensive review to validate the revised business plan and assessed the airline’s liquidity and cash flow generation capacity for ongoing viability. We then prepared alternative scenarios, including ongoing business projections, sale of the business, bankruptcy, and liquidation for the bank and other creditors to consider when undertaking their path forward.
Results
Based on the scenario optionality analysis presented by Riveron, the bank decided to take a preemptive step and embargoed the company’s fleet. Three months later, the airline filed for bankruptcy with a remaining debt of approximately $300M.
Ready to connect?
Ready to explore related solutions?
More Insights
Implementing an AI-Enabled Intelligent Manufacturing Solution for a Tier-1 Automotive Supplier
An automotive supplier worked with Riveron IMS experts to create a predictive solution that connected process data using artificial intelligence and increased productivity by approximately 100 parts per day.
Transforming Retail Finance with OneStream During $9B Catalyst Brands Formation
As JCPenney evolved into Catalyst Brands, a $9B+ retail platform spanning six iconic brands, finance operations were unified on OneStream to enable automated consolidation, enhanced reporting visibility, and a scalable foundation for continued transformation.
Elevating a Cryptocurrency Company’s Finance Function by Completing a $372M De-SPAC
Riveron guided a cryptocurrency financial services company through a $372M de-SPAC IPO, delivering SEC-compliant reporting, complex valuations, and audit readiness—transforming a never-audited business into a public company in nine months.
Delivering AI-Powered Contract Intelligence
A large-scale infrastructure construction company behind some of the country’s most complex infrastructure projects like data centers, airports, and more, is no stranger to high-stakes contracts with razor-thin margins for error.
4 NetSuite Add-Ons Help Businesses Connect to Salesforce, Manage Bulk Orders, Automate Reclassifications, or Handle Approvals via Email
Organizations using NetSuite can extend the value of their ERP investment through solutions that streamline integrations, automate finance and operational processes, and improve scalability.
