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AeroCentury in default of credit facility provisions

AeroCentury Corp. disclosed that it is in default of several provisions of its credit facility due to certain asset impairments and bad debt allowances recorded in 2019, according to a news release for the company's most recent financial results.

AeroCentury said about $84 million in borrowings are currently outstanding under the facility, and that it is unable to borrow additional amounts while in default.

As a result, remedies in favor of the lenders were made, including the acceleration of maturity of all amounts owing under the credit facility and the ability to act upon the security interests of the lenders in substantially all of AeroCentury's aircraft assets.

The company said it is in talks with the lenders in an attempt to convert the credit facility into a term loan facility.