In Re (#06 June 2016)

Cross-Border Aircraft Foreclosure: Viable Mechanisms and Associated Risks

Kateryna Y. Safronenko

Cross-border financing of the aviation sector is a crucial aspect of industry development. Bank loans for purchase of an aircraft, in practice, are pledged by a mortgage over the aircraft. Herewith, security of a debt by specific collateral might help a creditor to protect its interests as well as minimize potential risks within the process of asset foreclosure. Recent economic destabilization in Ukraine affects proper fulfilment of obligations by local debtors vis-à-vis foreign creditors, resulted in numerous requests with regard to validity of a collateral as well as aircraft repossession process...

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