Triton Aviation Finance Launches Consent Solicitation
“The year-on-year decline in profits during the quarter was on account of stagnation in loan growth and lower yield on liquidated loan accounts,” Managing Director George Alexander Muthoot said in a statement. Expenses were high on account of lenders continuing higher level of interest and administrative expenses going up with the addition of branches in the past one year, he said. The company’s retail loan assets under management stood at Rs 25,848 crore as of June 30. Muthoot Finance, the Kochi-based gold financing and non-deposit taking NBFC (Non-Banking Finance Company), said it has applied to the Reserve Bank for a banking licence.
Once you insure deposits, therefore, you also must regulate banks more strictly (setting rules for bank capital, among other things). Thats the old model for systemic safety in finance: deposit insurance plus bank regulation. Beyond Regulation A different kind of run brought the financial system down in 2008. In a shift that left regulators way behind, modern finance moved much of the business of maturity transformation out of retail banks and into the capital market .
Old-Fashioned Regulators Miss What’s New in Finance
The record date for the Consent Solicitation is 5:00 p.m., New York City time, on July 24, 2013. The overall purpose of the Proposed Amendments, as described more fully in the Consent Solicitation Statement, is to (i) provide TAF with the flexibility to enter into leases with lessees and generally manage the portfolio in a manner that better reflects the current market and other conditions affecting the current portfolio, (ii) facilitate the on-going leasing and sale of TAFs aircraft portfolio in order to maximize the value of the remaining assets of TAF, taking into account rapidly changing market conditions and the age of TAFs aircraft, (iii) reduce the minimum level of hull, repossession (political risk) and airline liability insurance to levels that better reflect current market conditions and the state of the aircraft portfolio, (iv) eliminate the time delay and costs associated with obtaining rating agency confirmation or the approval of the rating agencies and providing notice to the rating agencies prior to taking certain actions by TAF as currently required under the Indenture and (v) otherwise amend the Indenture to effectuate the foregoing. In addition, the Proposed Amendments would establish a process for the gradual repayment to the Class A liquidity provider of funds held in a cash collateral account as a result of a downgrade of such provider (which funds were originally drawn from such Class A liquidity provider) and for the orderly funding of a smaller replacement cash collateral account for Class A interest and expenses. For the reasons described in the Consent Solicitation Statement, the controlling trustee of TAF, having consulted with the administrative agent, the servicers and its legal, tax and other advisors, recommends that the holders of the Notes consent to the Proposed Amendments. Copies of the Consent Solicitation Statement and the other Consent Solicitation materials (including the Letter of Consent) are available from Global Restructuring Services, Inc., as information agent, the contact details of which are set out below.
UPDATE 1-EU finance arm curbs loans to coal-fired power plants
The EIB decision follows moves by other multilateral financial institutions such as the Washington-headquartered World Bank to fund coal-fired power stations only in “rare circumstances”. RECONSIDERING COAL The pullback by multilateral banks comes as more private sector lenders are already reconsidering their exposure to coal-related assets. “New coal power plants are no longer viewed as the low-risk, low-cost option for electricity, so we would expect that private finance for coal will stop flowing,” said Athena Ronquillo-Ballesteros of Washington-based think tank the World Resources Institute (WRI). U.S. President Barack Obama said earlier this month his administration would impose tougher standards on coal-fired power stations at home and urged multilateral lenders to curb finance to the sector abroad, except for the poorest countries.