India changes insolvency rules to exclude leased aircraft – Reuters

BENGALURU, Oct 4 (Reuters) – India has amended its insolvency rules to exclude leased aircraft from a moratorium that kicks in when an airline goes into bankruptcy, according to a government notification released on Tuesday, a move that could resolve discrepancies between global leasing rules and its bankruptcy laws.

Some provisions of the Indian Bankruptcy Code will not apply to transactions relating to aircraft, aircraft engines, airframes and helicopters, the notice showed.

Section 14 of India’s Insolvency and Bankruptcy Code, which imposes a moratorium on assets of a company undergoing insolvency, will not apply to aircraft covered by the global aircraft leasing rules under the Cape Town Convention – a treaty designed to protect repos…

Read the full article at: https://www.reuters.com/business/aerospace-defense/india-changes-insolvency-rules-exclude-leased-aircraft-2023-10-04/