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GIFT City SPVs Challenge Offshore Leasing Hubs
23 Mar
Summary
- Bankruptcy-remote SPVs proposed at GIFT City.
- New framework aims to simplify aircraft repossession.
- India seeks to reduce reliance on offshore hubs.
A consultation paper has introduced the concept of bankruptcy-remote Special Purpose Vehicles (SPVs) within India's GIFT City. This strategic move is designed to diminish the dependence on established offshore aircraft-leasing hubs, such as those in Ireland.
The proposed regulatory framework is set to bolster the security for aircraft lessors. It aims to streamline the process of asset recovery should an airline face bankruptcy proceedings.
This development follows concerns raised by foreign executives regarding the efficacy of India's aircraft repossession enforcement, even with recent rule introductions. Historically, lessors have encountered substantial obstacles in reclaiming their aircraft.
