Ftai Aviation Shares Sink Following Investigation Into Short: seller claims

FTAI Aviation

21/01/2025 14:47

Jan 21 (Reuters) - Shares of FTAI Aviation  FTAI.O 
plummeted more than 30% on Tuesday after the U.S. aircraft
lessor announced that its audit committee would investigate
claims of financial irregularities made by short-seller Muddy
Waters Research.
    Earlier this month, Muddy Waters said that it was short on
FTAI, criticizing the company's financial reporting as "highly
misleading." 
    The New York-based firm, which leases aircrafts and provides
after-market maintenance for commercial jet engines, said while
it disagreed with Muddy Waters' assertions, it may delay its
annual report filing to allow the review to be completed.
    The short seller said that FTAI was misleading investors by
reporting one-time engine sales as Maintenance Repair & Overhaul
revenue in its Aerospace Products segment.
    In the third quarter ended Sept. 30, FTAI reported $303.5
million in revenue from its Aerospace Products segment,
accounting for approximately 65% of its total quarterly sales.

 (Reporting by Anshuman Tripathy in Bengaluru; Editing by Tasim
Zahid)
 ((Anshuman.Tripathy@thomsonreuters.com;))