FTAI Aviation falls after saying short report may prompt delay of 10-K filing

Shares of FTAI Aviation (FTAI) have fallen $28.97, or 26%, to $83.41 in Tuesday morning trading after the company issued a regulatory filing before the market open. In the filing, the company stated in part that on January 18, the Audit Committee of the Board of Directors of the company determined to commence a review, which included the engagement of independent advisors, in response to the assertions alleged in the January 15 report issued by Muddy Waters Research, a well-known short-seller. “The Company strongly disagrees with the assertions made in the Short-Seller Report. However, in view of the timing of the Short-Seller Report relative to the preparation of the Company’s audited financial statements for fiscal year 2024, and the potential time required for any review of this nature, the Company cannot rule out the possibility that the filing of Company’s Annual Report on Form 10-K for fiscal year 2024 may be delayed. The Company reiterates its commitment to maintaining high standards of corporate governance and internal controls, as well as transparent and timely disclosure in compliance with applicable rules and regulations,” the filing stated. Additionally, the filing noted that on January 21, FTAI Aviation’s Chairman and Chief Executive Officer, Joseph Adams, Jr. will participate in an industry event and provide certain updates about the company. “As used in the Remarks, ‘average gross assets’ is the average gross leasing equipment between December 31, 2023 and September 30, 2024 and ‘EBIT’ is Adjusted EBITDA for the nine months ended September 30, 2024 for the Aviation Leasing reportable segment, adjusted to exclude the Depreciation and Amortization, and annualized,” the filing stated.