Reuters/Dubai
Etihad Airways is urgently examining ways to avert a technical default of some $1.2bn in bonds indirectly linked to the Gulf airline, sources close to the situation told Reuters.
An Amsterdam-based special purpose vehicle called SPV Equity Alliance Partners (EAP) was set up in 2015 and issued two bonds for Etihad and other airlines it partially owned at the time, including Alitalia and Air Berlin, which are both now insolvent.
The bonds are quoted at a discount of more than 25 cents on the dollar after Alitalia entered special administration and Air Berlin filed for bankruptcy protection last year.
Etihad could now end up spending hundreds of millions of dollars to keep the bond structure alive, although it is not legally ob…
Read the full article at: http://www.gulf-times.com/story/580392/Etihad-scrambling-to-shore-up-1-2bn-bonds-before-c
