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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 July 7, 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 _
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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AerCo is offering notes in order to finance the acquisition of 30
additional aircraft from subsidiaries of AerFi Group plc and to refinance the
existing subclass A-1 notes. If all of the additional aircraft are acquired
AerCo would have a portfolio of 63 aircraft on lease to 38 lessees in 21
countries.
In connection with the note offering AerCo Group recently obtained
appraised values of the 63 aircraft as of April 30, 2000. The values provided by
the appraisers represent the base value in respect of 62 of the aircraft and the
scrap value in respect of one aircraft, the B747-200 currently on lease to Tower
Air (which has filed for Chapter 11 bankruptcy protection).
The base value is equal to the average of the opinions of the appraisers as
to the value of each aircraft at normal utilization rates in an open,
unrestricted and stable market as of April 30, 2000, adjusted to take account of
the reported maintenance standards of the aircraft. The appraisals were not
based on physical inspection of the aircraft and do not take into account the
value of the leases, maintenance reserves or security deposits. The scrap value
is determined by the appraisers based on the assumption that the aircraft will
no longer be utilized for flight operation and assumes that the aircraft will
ultimately be disassembled to a point where all economically viable assets,
including the engines, are sold individually.
On the basis of the three independent appraisals, the average base value
for 32, and scrap value for one of the 33 existing aircraft was approximately
$818 million compared withe an average base value for all 33 existing aircraft
of $850 million on February 18, 2000, the date of the last appraisals. The
reduction in value represents utilization for the period and the revaluation of
the B747-200 from base value to scrap value. The aggregate base and scrap values
calculated by each of the three appraisers for the 33 existing aircraft are $833
million in the case of BK Associates, Inc., $850 million in the case of Aircraft
Information Services, Inc. and $771 million in the case of Airclaims Limited.
On the basis of the three independent appraisals, the average base value of
the 30 additional aircraft was approximately $724 million. The aggregate base
values calculated by each of the three appraisers for the 30 additional aircraft
are $725 million in the case of BK Associates, Inc., $755 million in the case of
Aircraft Information Services, Inc. and $692 million in the case of Airclaims
Limited.
You should not rely on the appraised value as a measure of the realizable
value of any aircraft.
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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 hereto duly authorized.
AERCO LIMITED
Date: July 7, 2000
By: /s/ ADRIAN ROBINSON
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Director
EXHIBIT INDEX
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Exhibit 1 Appraised Values
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