It's a bad time for Insurers , an Irish High Court filing suggests , Dublin based CDB Aviation became the latest aircraft lessor to start legal action in pursuit of claims against a bunch of insurers over multiple aircraft it owns, now stuck in Russia.
Earlier , BOC Aviation Ltd. — the Singapore-based aircraft operating leasing company , had started the legal action against 16 insurers over its aircraft stuck in Russia.
Now , 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 listed 18 insurers named in the proceedings, as per the filing on Nov. 15 , included Swiss Re AG , Lloyd's of London Ltd, Chubb Ltd and Great Lakes Insurance, a subsidiary of Munich Re.
However , similar to the BOC Aviation filing , the latest filing did not include further details on the size of the claim by CDB , which had a total portfolio of 384 aircraft at the end of June.
Keeping track of the recent developments , the latest legal action are the third to be initiated in the Irish courts following filings by two other major leasing companies — Avolon and BOC Aviation Ltd.
In the month of June , AerCap Holdings NV , the world's biggest aircraft lessor ,had filed a $3.5 billion lawsuit at London's High Court over its insurance claim for more than 100 seized aircraft , the largest claim by any lessor related to the conflict.
CDB Aviation has reported a value of 747 million yuan ($105.4 million) asset write-down in the month of August but unlike most other lessors , it did not write down the full value of its Russian seized jets , as it saw a "high probability" of repossessing them in the foreseeable future.
The leasing company is 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.
Similar Story....
