FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For February 23, 2000
AERCO LIMITED
22 Grenville Street
St. Helier
Jersey, JE4 8PX
Channel Islands
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(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F
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Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes No X
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INDEX TO EXHIBITS
Item
1. AerCo Limited Press Release dated February 22, 2000.
Page 2 of 3
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SIGNATURE
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, thereunto duly authorized.
Dated: February 22, 2000
AERCO LIMITED
By:/s/ Michael Walsh
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Name: Michael Walsh
Title: Attorney-in-Fact
Page 3 of 3
Item 1
AERCO GROUP
Aviation House, Shannon, Ireland
Telephone: +353 61 360000 Fax: 353 61 360113
PRESS RELEASE
Under the terms of the AerCo Notes, AerCo Group (the "Company") is required
annually to commission an appraisal of the AerCo Fleet. The purpose of the
appraisal is to redirect, when appropriate, excess cash flow to the Senior
Classes of Notes and to increase the collateral coverage for each Class of
Notes. Reductions in appraised values cannot affect interest payments to be made
on Class A, B, C and D Notes but can cause the suspension of interest payments
on the Class E Notes.
The Company has obtained desktop appraisals of the "base value" of each of the
Company's 33 aircraft from three independent aircraft value appraisers;
Airclaims Limited ("Airclaims"), Aircraft Information Services, Inc. ("AISI")
and BK Associates, Inc. ("BK"). On the basis of these three appraisals, as of
February 18, 2000, the average appraised base value of the Company's portfolio
of aircraft was approximately $849.5 million (the "2000 Appraised Value")
compared with $881.5 million as of January 18, 1999. Airclaims' 2000 appraised
base value was $812.6 million, AISI's was $867.9 million and BK's was $867.9
million.
The decrease represented by the average appraised value of the portfolio at
February 18, 2000 compared with the average appraised value at January 18, 1999
is approximately $11 million less than the expected decrease implied by the
terms of the AerCo Notes.
Further information regarding the appraisals
Under the terms of the indenture governing the AerCo Notes, the Company is
required at the beginning of each year, commencing with 1999, to obtain
appraisals of the "base value" of its aircraft from at least three independent
appraisers. The appraisers ascertained the "base value" of each aircraft on the
basis of an open, unrestricted, stable market environment as of February 18,
2000 with a reasonable balance of supply and demand, and with full
consideration of each aircraft's "highest and best use", presuming an
arm's-length, cash transaction between willing, able and knowledgeable parties,
acting prudently, with an absence of duress and with a reasonable period of
time available for marketing, adjusted to account for the maintenance status of
each aircraft (with certain assumptions as to use since the last reported
status). The 2000 Appraised Value stated above does not reflect the values of
leases, maintenance reserves, security deposits or other collateral, if any,
related to a particular aircraft. An appraisal is only an estimate of value and
there can be no assurance that proceeds received upon any sale of an aircraft
would approximate the base value of that aircraft.
February 22, 2000
For further information please contact: Patrick Blaney at telephone number:
+353 61 360000.
ref.: 00pm0032
