Originally Posted by
west lakes
If that is the case and the administrator gets the XL UK assets back both those companies may have a problem
It is normal to insert a Trust Company in leases to guard against this, although for a simple transaction within a group they maybe didn't go to the effort and expense of doing so.
This is principally done to guard airlines against the risk of the aircraft leasing company going bust and the airline overnight losing ther key assets. If you look at the ownership papers you will often see reference to "XYZ Trust Co".