RT Journal Article
SR Electronic
T1 Aircraft Pre-Delivery Payment Financing Transactions
JF The Journal of Structured Finance
FD Institutional Investor Journals
SP 11
OP 21
DO 10.3905/JSF.2009.15.3.011
VO 15
IS 3
A1 Cameron A Gee
YR 2009
UL https://pm-research.com/content/15/3/11.abstract
AB In aircraft financing, pre-delivery payment financing—or PDP financing—refers to the financing of progress payments that a purchaser makes to a manufacturer while new aircraft are being built. This article discusses key contractual and bankruptcy aspects of PDP financing transactions. It steps through the basics of PDP financing and then discusses the bankruptcy “claw-back” issue that is currently affecting the PDP financing market place. The article also considers current and possible future structures that may help lenders and manufacturers better address bankruptcy problems affecting many existing PDP financing structures.TOPICS: Futures and forward contracts, credit default swaps