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Airlease Ltd. Announces Plan to Sell Remaining Assets and Dissolve
SAN FRANCISCO, March 18 /PRNewswire-FirstCall/ -- Airlease Ltd., a California
Limited Partnership (BULLETIN BOARD: AIRL) , announced today that the Board of
Directors of its GeneralPartner, acting in response to a recommendation made by
a special committee of independent directors, has directed the General Partner
to sell the Partnership's remaining assets as attractive sale opportunities
arise, distribute sale proceeds (after repaying debt and establishing
appropriate reserves) to unitholders after disposition, and dissolve the
Partnership when all assets are sold. Given current market conditions, the
General Partner cannot predict either the actual timing for completing such
sales or the prices and other terms of such sales. The General Partner also
cannot predict when net proceeds will be distributed to unitholders or the
aggregate amount of such net proceeds, both of which will depend upon a number
of factors, includingmarket conditions, the timing and terms of such asset
sales, the amount of cash required to settle outstanding liabilities and
contingencies, the amount of necessary cash reserves, and the expenses
associated with selling assets and dissolving the Partnership.
In 1997, the unitholders of the Partnership authorized the General Partner to
decide not to make new aircraft investments, to sell aircraft when attractive
opportunities arise, to distribute net sale proceeds and to dissolve the
Partnership when all assets are sold. Since that time, the General Partner has
continued to operate the Partnership and consider, from time to time,
alternative investments. However, the General Partner has not made new
investments in aircraft, primarily due to theweak aircraft leasing market. For
a variety of reasons, including the General Partner's belief that significant
improvement in this market is not forthcoming in the near term for the
Partnership's three aircraft, the General Partner has now determinedthat
unitholders likely will realize greater value from a dissolution of the
Partnership compared to continued operation of the Partnership. Accordingly,
the General Partner intends to exercise fully and promptly the authority granted
to it previouslyby the unitholders to sell assets, distribute net proceeds and
dissolve the Partnership.
In 1997, the unitholders also authorized the General Partner to impose
restrictions on the transferability of outstanding units. The General Partner
has not taken this action, although it reserves the right to do so if it
concludes that implementing such restrictions would be in the best interests of
the unitholders in light of current partnership tax law.
The Partnership's portfolio consists of three aircraft. One aircraft, a
727-200FH, is leased to FedEx Corporation under a lease which expires in April
2006. The other two aircraft are MD-82s leased to CSI Aviation Services, Inc.
through May 2004. The General Partner is actively seeking buyers for these
aircraft.
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995:
The Partnership has included in this press release certain "forward- looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995 concerning the Partnership's business, operations and financial
condition. The words or phrases "can be," "may affect," "may depend," "expect,"
"believe," "anticipate," "intend," "will," "estimate," "project" and similar
words and phrases are intended to identify such forward-looking statements.
Such forward-looking statements are subject to various known and unknown risks
and uncertainties and the Partnership cautions you that any forward-looking
information provided by or on behalf of the Partnership is not a guarantee of
future performance. Actual results could differ materially from those
anticipated in such forward-looking statements due to a number of factors, some
of which are beyond the Partnership's control, in addition to those discussed in
the Partnership's filings with the Securities and Exchange Commission, including
(i) changes in the aircraft or aircraft leasing market; (ii) the economic
downturn in the airline industry; (iii) default by lessees under leases causing
the Partnership to incur uncontemplated expenses or not to receive rental income
as and when expected; (iv) the continued impact of the events of September 11,
2001, as well as war, acts of terrorism, or other military involvement by the
U.S. or others in Iraq or other regions, on the aircraft or aircraft leasing
market and on the airline industry; (v) changes in interest rates; (vi) the
timing of asset sales, the prices received by the Partnership for its assets,
and the costs of selling assets, satisfying Partnership liabilities and
contingencies, and dissolving the Partnership; and (vii) legislative or
regulatory changes that adversely affect the value of aircraft. All such
forward-looking statements are current only as of the date on which such
statements were made. The Partnership does not undertake any obligation to
publicly update any forward- looking statement to reflect events or
circumstances after the date on which any such statement is made or to reflect
the occurrence of unanticipated events.
DATASOURCE: Airlease Ltd.
CONTACT: Jad Mansour, +1-415-765-1814, for Airlease Ltd.