XOJet Allays Fears Following Lehman Bros. Fallout

 - September 18, 2008, 12:40 PM

Lehman Brothers’ bankruptcy filing will have no impact on XOJet’s international expansion plans, according to the San Carlos, Calif.-based charter operator. XOJet announced last year that it had secured $220 million in aircraft leasing finance from the New York-based investment banking firm, along with an additional $143 million in equity financing from Lehman Brothers and TPG Growth. At the same time, the company announced the acquisition of 30 Cessna Citation Xs and 80 Bombardier Challenger 300s, with a combined value of $2.5 billion. “The Lehman Brothers bankruptcy will have no material impact on XOJet’s business,” an XOJet spokesman told AIN. “XOJet will proceed with taking delivery of its Challenger 300 fleet, beginning October 2 as planned.” Lehman’s board of directors on Sunday voted to file for protection under the provisions of Chapter 11 of the U.S. bankruptcy code. In papers filed with the U.S. Bankruptcy Court, Southern District of New York, the company listed more than 100,000 creditors, more than $1 billion in assets and more than $1 billion in liabilities. On Tuesday, Barclays announced plans to acquire Lehman Brothers’ North American investment banking and capital markets operations and supporting infrastructure.