AerSale Corp 8-K, filed Jan 8, 2025
AerSale Corp (ASLE)
About this 8-K
AerSale Corp filed this 8-K on January 8, 2025.
Items reported
- Item 8.01: Other events
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Item 8.01. Other Events
As previously disclosed by AerSale Corporation (the “Company”), in April 2024, one of the Company’s leased secondary parts warehouses in Roswell, New Mexico, was destroyed by a fire. Inside the warehouse were various aircraft parts inventory typically sold by the Company as used service material (“USM”). AerSale carries insurance covering this inventory, with a limit of $100 million and a $10,000 deductible and submitted a claim for the replacement value of that parts inventory which was destroyed or rendered not sellable by the fire in the amount of approximately $67 million (the “Claim”). The cost basis of the destroyed parts inventory is $6.0 million; accordingly, since the insurance claim had yet to be paid as of September 30, 2024, the Company recorded an impairment of $6.0 million and a $6.0 million non-trade receivable in the Company’s condensed consolidated balance sheets as of September 30, 2024.
On December 9, 2024, the Company executed an agreement whereby the insurance carriers agreed to make a good faith payment on the Claim in the amount of $37.0 million (the “Advance”). The final valuation of the Claim is still under review.
As of the date of this release, the Company received Advance payments totaling approximately $34.6 million. The Company is in active discussions with the insurance carriers in order to provide the additional information needed to receive the outstanding balances. The Company believes it is probable that it will recover additional amounts up to the amount of its Claim, but any remaining payments depend on the final valuation of the insurance carriers.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| AERSALE CORPORATION | |
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Date: Januery 8, 2025 | By: | /s/ James Fry |
| Name: | James Fry |
| Title: | Executive Vice President, General Counsel & Corporate Secretary |