The Opportunity

The Reditum Capital team finances assets across a broad spectrum and, on this occasion, an international client based in Guernsey required a loan facility secured against a 2005 Bombardier Challenger 604 aircraft. The SPV owner of the aircraft had run up operating bills with the UK operator and the operator had impounded the aircraft as a result of these remaining unpaid. Due to the poor credit performance of the borrower, rather than structure the transaction as a loan, Reditum Capital arranged the settlement of the operator’s debt, the simultaneous purchase of the aircraft and then the provision of a 12-month lease with a balloon payment to allow the original SPV owner to re-acquire the aircraft. Reditum Capital worked with four investors to complete the transaction.

The very low mileage aircraft was acquired for US$3.28m (including acquisition costs) against a blue book valuation of US$6.4m. Upon completion of the transaction, the first instalment payment for the lease due in January 2017 of US$1.0m was not made and the aircraft was therefore listed for sale. The aircraft was sold in August 2017 for US$4.9m.

Financial Highlights

Completion date

October 2016

Repayment date

August 2017

Purchase price incl. acquisition costs


Operating expenses and sale costs


Sale proceeds


LTV on acquisition


Net profit to investors


Get in touch

As a borrower, investor or intermediary, please use this form below to get in touch. We will respond the next business day.

  • * Required fields
  • This field is for validation purposes and should be left unchanged.