AerSale Corporation Evaluates Progress on Insurance Claim Following Fire Incident

AerSale Corporation, a leader in the aviation aftermarket solutions sector, recently provided an update on the aftermath of a fire incident that occurred in one of its leased secondary parts warehouses in Roswell, New Mexico. The company released a statement regarding the insurance claim filed in the wake of the fire, as outlined in a recent 8-K filing submitted to the Securities and Exchange Commission.

In the 8-K filing, AerSale Corporation detailed that the fire, which took place in April 2024, resulted in the destruction of various aircraft parts inventory typically sold by the company as used service material (“USM”). The company carries insurance covering this inventory, with a limit of $100 million and a $10,000 deductible. A claim for the replacement value of the destroyed parts inventory was submitted, totaling approximately $67 million. To account for the loss, the company recorded an impairment of $6.0 million as of September 30, 2024.

A positive development for AerSale came on December 9, 2024, when the company secured an agreement with its insurance carriers for a good faith payment on the claim amounting to $37.0 million. As of the current date, the company has received advance payments totaling about $34.6 million from the insurance carriers. AerSale is engaged in active dialogues with the insurers to furnish supplementary information required to secure the outstanding balances. The final payout amount is contingent upon the conclusive valuation by the insurance carriers.

The company expressed confidence in the likelihood of receiving additional amounts up to the claim value. However, the finalization of further payments remains dependent on the ultimate valuation by the insurance carriers.

In a separate development, unrelated to the insurance claim, DBV Technologies, a clinical-stage biopharmaceutical company, announced positive results from its EPITOPE Phase 3 Open-Label Extension Study. The findings demonstrated continued improvements in the treatment benefit of VIASKIN Peanut patch in toddlers aged 1-3 years over 36 months.

AerSale Corporation’s proactive efforts to address the consequences of the warehouse fire and the subsequent progress made on the insurance claim align with the company’s commitment to managing adverse situations effectively while striving for positive outcomes.

For further information, the original 8-K filing can be accessed through official channels to verify the details provided above.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read AerSale’s 8K filing here.

AerSale Company Profile

AerSale Corporation provides aftermarket commercial aircraft, engines, and its parts to passenger and cargo airlines, leasing companies, original equipment manufacturers, and government and defense contractors, as well as maintenance, repair, and overhaul (MRO) service providers worldwide. It operates in two segments, Asset Management Solutions and Technical Operations (TechOps).