SMBC joins list of lessors pursuing Russian claims through the courts

BOC Aviation

29/11/2022 14:02

DUBLIN, Nov 29 (Reuters) - SMBC Aviation Capital has
joined most of the world's largest aircraft lessors in pursuing
insurance claims through the courts over jets it owns that are
stuck in Russia, an Irish High Court filing showed.
    Irish-headquartered SMBC recorded an impairment of $1.6
billion earlier this year to cover the full financial impact of
having 34 jets stuck in Russia after European Union sanctions
that forced the termination of all Russian leases.
    The filing, issued against Lloyd's of London  SOLYD.UL  on
Nov. 28, did not include details on the size of the claim by
SMBC, which is owned by a consortium including Japan's Sumitomo
Corp  8053.T  and Sumitomo Mitsui Financial Group  8316.T .
    "SMBC Aviation Capital confirms it has commenced litigation
in the Irish courts against the insurers of aircraft lost in
Russia. Appropriate insurance is in place and we expect to be
paid in accordance with our insurance policies," SMBC said in a
statement.
    A spokesperson for Lloyd's of London said it was not at
liberty to share information on any specific claim, policy or
policyholder.
    SMBC is set to become the world's second largest aircraft
lessor by number of aircraft when it completes a $6.7 billion
acquisition of smaller rival Goshawk Aviation shortly. 
    The proceedings are the fourth to be initiated in the Irish
courts following filings by major lessors Avolon, BOC Aviation
Ltd  2588.HK  and CDB Aviation.
    Lessors are suing dozens of insurers around the world for
around $6.5 billion, including a $3.5 billion lawsuit filed by
the world's biggest aircraft lessor, AerCap Holdings NV  AER.N ,
at London's High Court related to more than 100 seized planes.
 (Reporting by Padraic Halpin
Editing by Mark Potter)
 ((padraic.halpin@thomsonreuters.com; +353 1 500 1504; Reuters
Messaging: padraic.halpin.thomsonreuters.com@reuters.net))