The Corporate Insolvency and Governance Act 2020 and aircraft finance—Part 2

Table of contents

• Insolvency termination clauses in aircraft operating leases
• Who is excluded from the application of the new prohibition on termination due to insolvency?
• Insolvency termination clauses and the Cape Town Convention
• Is there any way that supply contracts can be terminated due to an airline/lessee entering into an insolvency or formal restructuring process?
• What next?

Article summary

Restructuring and Insolvency analysis: What are the potential implications of the new measures in relation to contracts for the supply of goods or services set out in the Corporate Insolvency and Governance Act 2020 (CIGA 2020) for aircraft lenders, lessors and airlines? In the second of a series of three articles, Keith Wilson, Gwen Edwards and Neha Arora of CMS consider the new prohibition on suppliers invoking termination clauses (or changing other terms) upon an insolvency or formal restructuring process introduced by CIGA 2020.