One year after the sale began, and seven months after the buyer was announced, Allco Aviation has finally been sold. The closing has ended what has been one of the most complicated aircraft leasing company sales ever.

The sale has been finalised despite the opposition of several Allco Aviation aircraft lenders towards HNA Group's bid.

"We are very pleased to see the sale completed and control of the business in the hands of the purchaser," says Peter Gothard, a partner at Ferrier Hodgson and the receiver to Allco. "It is a good result for all parties involved - not only for the banking syndicate, but also for the employees and the non-recourse lenders." HNA Group, which was formerly announced as the winning bidder in May 2009, has renamed the company Hong Kong Aviation. The Chinese transportation, hotel and retail company that owns Hainan Airlines, says it will become a major Asian aircraft leasing company. "We are relieved that the sale has closed but not surprised. We always knew our bid would be successful," says Bharat Bhise, CEO of Bravia Capital, the adviser to the HNA Group, who has led the deal on behalf of the Chinese company.

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Bhise says that they plan to announce the appointment of a "world-class CEO" for Hong Kong Aviation as soon as possible.

The sale was delayed by the need to get lenders to consent to the sale. A number of Allco Aviation's largest lenders and aircraft investors opposed the bid and had hoped to appoint Macquarie as an alternative manager.

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However a judge ruled in November 2008 that all lenders were needed to appoint a new manager and not just a majority of lenders on each transaction. As Allco Finance, represented by the receiver, had positions in about half of the aircraft this court decision made it possible to complete the deal.