Jet Airways Fails to Pay Interest to Etihad-Linked Entity

An entity set up to finance affiliates of Etihad Airways PJSC said Jet Airways India Ltd. has become the third carrier in the group to fall behind on interest payments, Bloomberg News reported. EA Partners I, a vehicle created in 2015 to allow Etihad to provide funds to airlines in which it owned stakes, said in a statement that the Indian carrier failed to make a payment on March 19 on account of "temporary liquidity constraints." Etihad set up two vehicles, EA Partners I and II, which sold $1.2 billion of bonds to raise funds for several airlines. The structure was designed to provide financing for the airlines while minimizing the burden on the balance sheet of their Abu Dhabi-based parent company. The airlines each guarantee as much as 20 percent of the bonds, making regular contributions into a cash pool from which coupons are paid to investors who bought the securities. Read more