JT8D-219 engines
from SAS. Delivery will
commence immediately
and is scheduled to be
completed by February
2013. Sky Works Leasing
acted as SAS’s advisor
and remarketing agent.
Moderate Business Aviation
Industry Growth in ‘ 12
In its annual Business
Aviation Outlook,
Honeywell forecasted
sales and delivery of
$230 billion in new
business jets from 2011
through 2021. This
represents approximately
a 2% increase in total
expected industry sales
value compared to the
prior ten-year horizon
Honeywell forecasted
in 2010. While 2012
deliveries are expected to
be below 700 airframes,
Honeywell anticipates
higher delivery levels
than in 2011.
ILFC Concludes
Acquisition of Aero Turbine
International Lease
Finance Corporation (ILFC)
completed its previously
announced acquisition of
Aero Turbine from AerCap.
Aero Turbine will operate
as a wholly owned
subsidiary of ILFC.
GECAS Orders Six
Embraer E190s
GECAS reached an
agreement with Embraer
for the acquisition of
six Embraer 190s and
options for another six
aircraft. Delivery of the
first aircraft is scheduled
for the Q4/12. GECAS
presently has 93 E-Jets
of all models on lease
with 15 airlines around
the world. GECAS
ordered two E-Jets at the
Paris Air Show in June
that are now contracted
for lease to a South
American carrier.
FLY Leasing Closes
Acquisition of 49 Aircraft
Commercial jet lessor
FLY Leasing completed
the acquisition of a
$1.4 billion portfolio
of 49 aircraft from an
Australian investor
group, Global Aviation
Asset Management,
bringing the company’s
fleet to a total of 109
aircraft on lease to 53
airlines in 29 countries.
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LEAN Expands With
New Firms
The Lease Enforcement
Attorney Network
(LEAN) added three new
members: Philadelphia-based Deeb Blum Murphy
Frishberg & Markovich;
Montreal-based Lavery,
De Billy; and Atlanta-based Sicay-Perrow,
Knighten & Bohan.
Court Delays Sentencing
Until May for Five
EFI Participants
The sentencing of
five defendants in the
Equipment Finance Inc.
loan fraud was delayed
until May 2012 at the
request of a newly
assigned assistant U.S.
attorney in the case,
Judy G. Smith, according
to court documents.
Sentencing of Joseph M.
Braas, Michael J. Schlager,
John Wiley Spann, Mary C.
Stankiewicz and John S.
Tomberlin was originally
scheduled for November.
The trial for defendants
Misty L. Kroesen and
her husband Curtis A.
Kroesen, former EFI
employees, and Harold
Young, a businessman
from Alabama, originally
set for October 2011, is
scheduled for April 5,
2012. The defendants
were indicted with
conspiracy to commit
mail fraud, arising out
of a complex loan fraud
scheme that resulted in a
loss of $53 million.
Blank Rome Adds Equipment
Leasing Attorneys
Blank Rome hired Stephen
T. Whelan as a partner
in the Financial Services
group. For more than
30 years, he built a
substantial practice in
the areas of equipment
leasing and structured
finance, secured lending
and asset securitization.
Previously, he was a
member of the Capital
Markets practice at
SNR Denton. Michael
Kim joined the firm
as an associate in the
Financial Services group.
He previously served
as senior managing
associate, Capital Markets
Group, at SNR Denton.
Co-Conspirator Pleads
Guilty in $135MM Scheme
The owner of a purported
medical equipment
company based in New
Jersey pleaded guilty
in connection with his
role in a $135 million
phony medical equipment
lease scheme, U.S.
Attorney Paul J. Fishman
announced. Bruce Donner,
owner of Donner Medical
Marketing, a New Jersey
corporation that purported
to be a medical equipment
vendor, admitted his
role in assisting Charles
Schwartz, owner and
president of Allied Health
Care Services, execute
a $135 million phony
lease scheme that caused
losses of $80 million and
victimized more than 50
financial institutions.
Kingsbury Files Bankruptcy,
Owes Utica LeaseCo
Machine tool maker
Kingsbury filed for Chapter
11 bankruptcy seeking
to reorganize after facing
the potential repossession
and auction of its
equipment. According to
court filings, Kingsbury
owes Utica LeaseCo,
Diamond Business Credit
and U.S. Small Business
Administration (SBA)
$1.26 million, $1.34
million and $1.3 million,
respectively. The Utica
debt arises from a $1.525
million transaction entered
into in March 2008.
Kingsbury is seeking an
order from court to obtain
$300,000 DIP financing
from Diamond.
THE PITTSBURGH POST-GAZETTE REPORTED that former Le-Nature’s CEO Gregory J.
Podlucky was sentenced to 20 years in prison for financial fraud that a judge said
bilked investors and lenders out of more than $6.8 million. Three of Podlucky’s
business associates pleaded guilty to fraud charges and await sentencing, a fourth
was found guilty at trial and Podlucky’s wife and son face money laundering
charges, the report said.
Recently, Wells Fargo’s Wachovia Capital Markets unit and BDO Seidman settled
lawsuits over their roles in the collapse of Le-Nature’s for $130 million. The
Pittsburgh Post-Gazette also reported that Podlucky owes as much as $661 million
in restitution to lenders and investors, including Wachovia Bank $236 million,
Manufacturers Traders Trust $156 million and CIT Group/Equipment Financing $112
million, plus millions more to other entities. According to the report, five other
business associates, all of whom have yet to be sentenced, may also have to
contribute to the restitution.
A subsequent report said Podlucky appealed his 20-year sentence and his
attorney petitioned the court to withdraw from the case, as he sees no basis for
the appeal because by pleading guilty Podlucky waived his rights to challenge
the sentence. n
