PT  - JOURNAL ARTICLE
AU  - Cameron A Gee
TI  - Aircraft Pre-Delivery Payment Financing Transactions
AID  - 10.3905/JSF.2009.15.3.011
DP  - 2009 Oct 31
TA  - The Journal of Structured Finance
PG  - 11--21
VI  - 15
IP  - 3
4099  - https://pm-research.com/content/15/3/11.short
4100  - https://pm-research.com/content/15/3/11.full
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