Frontier Airlines, a US airline, claimed that its assets belonging to Dublin-based aircraft lender AMCK were “attacked” as part of a $ 4 billion acquisition. A Colorado-based airline will lose its $ 53 million (€ 52 million) lawsuit against it in 2020.
Rontier, who leased 15 jets from AMCK, sued an Irish-based lender in April in connection with the acquisition of AMCK.
The airline alleged in a complaint filed in a court in New York that it did not agree to change ownership or lease the aircraft rented from AMCK.
Under the lease agreement, it claims that the change of ownership requires the consent of the frontier.
Carlyle announced in December last year that Maverick Aviation Partnership, an investment vehicle managed by Carlyle Aviation Partners, has signed an agreement to acquire AMCK’s aircraft portfolio.
The fleet contains orders for 125 predominantly narrow-body aircraft and 20 Airbus A320 and A321 jets.
The $ 4 billion valuation imposed on AMCK’s fleet does not include the value of the purchase order.
Frontier Airlines is an important US airline, with approximately 120 aircraft serving more than 100 destinations in the United States, the Caribbean, Mexico and Central America.
Frontier also sued AMCK in a lawsuit related to plans to sell and leaseback six jets in 2020.
Frontier Airlines has filed a new proceeding against AMCK in April, with more than 98% of its total assets in a Luxembourg-based entity called Manchester Aviation Finance in late December last year. He accused him of “illegal” transfer.
Frontier claims that AMCK was the sole shareholder of the Luxembourg company and was only one day before relinquishing full control over Vermilion Aviation Holdings.
On December 23, last year, Vermilion sold all ownership of Manchester to Carlyle Partners.
“After unloading the asset, AMCK Holdings was excluded from the acquisition by Carlyle. To date, Frontier has unknown ownership and to meet Frontier’s claims, including Frontier’s pending claims. The assets remain an inadequate shell entity, “the airline claimed in court filings.
“The transfer of AMCK Holdings’ assets raided the assets without fair consideration and damaged the frontier as AMCK’s creditors,” he claims.
Frontier claims that the buyer “caused further breach of the lease agreement” with AMCK after the sale to Carlyle was completed.
Frontier has told the court that it is seeking damages “resulting in the transfer of profits from the lease agreement without Frontier’s consent.”
“Frontier seeks to involve AMCK Holdings and other affiliates participating in AMCK Holdings’ asset deprivation scheme for the illegal transfer of assets from AMCK Holdings to prove the ruling.” Added in the corrected complaint.
Frontier wants to prevent the court from having to pay an aircraft lease to a “suspicious security trustee.”