rmsmith 1 #1 July 11, 2010 Repossessor advises banks against reclaiming aircraft By: Mark Huber July 1, 2010 Business Aviation The nation’s foremost aircraft repossessor is counseling his bank and leasing company clients not to take back delinquent aircraft. “We are telling banks not to repo,” said Nick Popovich, president of Sage-Popovich, the global aircraft repossession, aviation parts and services company. Popovich said the declining value of used aircraft and the flat resale market make this a bad time to take back airplanes and that the move would only compound banks’ well publicized problems. Popovich has been in the repossession business since 1979 and his firm has repossessed more than 1,400 aircraft, but now, he said, is generally not the time. “The aircraft market is distressed and everyone knows it,” Popovich said. “I’ve seen it with my own airplanes. My Challenger went from a $9 million airplane to a $3 million airplane in eight months.” Popovich painted a hypothetical scenario for a bank to illustrate his point. “If you are a bank [with] a $3 million note on an airplane that is now worth only $1 million, you have a $2 million deficiency, and now you have to insure it, store it and worry about maintaining it.” Continued... http://www.ainonline.com/news/single-news-page/article/repossessor-advises-banks-against-reclaiming-aircraft-25211/ Quote Share this post Link to post Share on other sites
