WALLESS Achieved a Significant Victory in the Lithuanian Aviation Industry
Lithuanian court assessed an English law governed aircraft lease agreement in the context of the Lithuanian airline’s bankruptcy and upheld the application of the “Commitment Fee” and “Additional Rent” clauses.
The lease agreement provided for both the “Commitment Fee” and “Additional Rent” amounts upon payment irrevocably and unconditionally to become the unencumbered property of the lessor. In this respect, the Lithuanian court supported the position of the lessor and no refund was awarded to the bankrupted airline. The decision was made despite the claim of other creditors and the bankruptcy administrator that relevant property should have been treated as a deposit, which should have been repaid.
This court judgment increases certainty to lessors concerning upfront payments received from Lithuanian airlines.
WALLESS team working on this transaction consisted of partner Simona Drukteinienė and aircraft finance associate Enrika Tamašauskaitė.