IRS Relents over Nordic Bankruptcy Proposals

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The U.S. Internal Revenue Service has lifted its objection to Limerick-based aircraft lessor Nordic Aviation Capital’s bankruptcy plan, the Independent reported. Nordic Aviation Capital (NAC) has been seeking to get out from under $6.3bn (€5.8bn) of debt by handing it to lenders. The IRS said in a filing on April 15 that it was withdrawing its objection to the bankruptcy plan on the condition that the lenders pay any administrative claims without the IRS having to file a request for them. The IRS had raised a last-minute objection to the plan last week on technical grounds. NAC entered chapter 11 in December 2021, with a final hearing in the case – when a US court in the state of Virginia will be asked to approve NAC’s restructuring deal with its creditors and debtors – scheduled for tomorrow. The outstanding tax debt owed by Nordic is modest, around $250,000. Read more.