CDB Aviation latest lessor to take insurers to court

BOC Aviation

16/11/2022 22:26

DUBLIN, Nov 16 (Reuters) - CDB Aviation became the
latest aircraft lessor to start legal action in pursuit of
claims against a large number of insurers over jets it owns that
are stuck in Russia, an Irish High Court filing showed.
    The Irish-based lessor, owned by the China Development Bank
(CDB), China's largest policy bank, still has nine aircraft in
Russia after Moscow blocked some 400 jets from leaving following
Western sanctions over its February invasion of Ukraine. 
    The 18 insurers named in the proceedings, which the filing
shows was issued on Nov. 15, include Lloyd's of London Ltd
 SOLYD.UL , Chubb Ltd  CB.BN , Swiss Re AG  SRENH.S  and Great
Lakes Insurance, a subsidiary of Munich Re  MUVGGR.UL .
    The filing did not include details on the size of the claim
by CDB, which had a total portfolio of 384 aircraft at the end
of June. 
    The proceedings are the third to be initiated in the Irish
courts following filings by major lessors Avolon and BOC
Aviation Ltd  2588.HK . 
    Dublin-based AerCap Holdings NV  AER.N , the world's biggest
aircraft lessor, in June filed a $3.5 billion lawsuit at
London's High Court over its insurance claim for more than 100
seized planes, the largest claim by any lessor related to the
conflict.
    CDB Aviation recognised an 747 million yuan ($105.4 million)
asset write-down in August but unlike most other lessors, it did
not write down the full value of its Russian jets as it saw a
"high probability" of repossessing them in the foreseeable
future.
    It said at the time that it was still actively communicating
with Russian airlines to find effective ways to repossess the
aircraft but that in a worse case scenario it may need to fully
write down their value if it cannot get them back.
($1 = 7.0849 Chinese yuan renminbi)
 (Reporting by Padraic Halpin; Editing by Stephen Coates)
 ((padraic.halpin@thomsonreuters.com; +353 1 500 1504; Reuters
Messaging: padraic.halpin.thomsonreuters.com@reuters.net))