THE RESPONSE

How should lessors handle the growing number of restructuring demands, especially with the winter months ahead? What makes sense and what falls into the ‘you've got to be kidding me bucket’? Lessors need to be pragmatic, but they have never been in this situation before. Normally restructurings are more ad hoc; but now, as in the case of MAB, others are watching and waiting to see what happens to gain leverage in their particular dealings. Will delinquencies result in mergers and consolidation in the leasing space? Or will this only happen when the existing equity takes a haircut?