Bethel Finance: Global Knafaim:18% revenue from American Airlines

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Bethel Finance news:

Knafaim Holdings Ltd. plane leasing subsidiary Global Knafaim today notified the TASE of its exposure to the Chapter 11 bankruptcy filing by American Airlines parent company AMR Corporation (NYSE: AMR). Global Knafaim leases six planes to American Airlines: one Boeing 767-300 and five MD-82s. The leases expire in 2014-15.

Under Chapter 11, American Airlines will restructure and hold talks with its creditors and employees. If American Airlines fails to meet the leasing terms on its planes within 60 days of the Chapter 11 filing, the owners of the planes it leases, including Global Knafaim, have the right to recover the planes and lease them to another airline, unless the parties reach a different agreement.

Global Knafaim disclosed that its lease income from American Airlines totaled $64 million to date. The income amounted to 18% of its total revenue in 2010 and in January-September 2011, and it expected this proportion to continue through the lease periods of the planes.