이 기사는 2021년 03월 18일 08시57분 thebell에 표출된 기사입니다

The fallout from the Covid-19 pandemic on the aviation industry has chilled the aircraft asset-backed securities (ABS) market, raising concerns about a wave of defaults across the sector.

Hi Air E M No.1 Co Ltd, a special purpose vehicle (SPV), failed to repay principal worth $43.2 million for the subordinate tranches of aircraft ABS notes due in February, according to sources.

The SPV was created in in the Caymans by Hi Investment & Securities, a lessor that bought two used jets made by Boeing to lease to the Dubai-based airline Emirates in 2017.

The Seoul-based brokerage firm financed the acquisition costs of the planes by issuing ABS in the domestic market, through two SPVs – Hi Air E M No.1 Co Ltd and Hi Air E M No. 2 Co Ltd – with each SPV issuing notes worth $92.65 million and $68.2 million respectively.

The senior notes issued by Hi Air E M No.1 – worth $49.45 million – were repaid in full because they were paid by lease rents. The subordinate notes were structured be repaid with proceeds from the sale of the planes. But, Emirates, which was expected to buy them from the lessor, changed its mind and canceled the purchase.

Hi Air E M No. 2, which was structured in the same way with Hi Air E M No.1, will unlikely avoid defaults on the subordinate notes, which is due on Wednesday.

“The lessor will likely try to find a new buyer for the plans after they are returned,” an industry insider said. (Reporting by Hye-rim Pi)