JetBlue creditors hired advisers as the airline’s shares and bonds fell
JetBlue creditors are working with restructuring advisers as the airline faces cash burn and high oil prices, according to people cited by Bloomberg and The Wall Street Journal. Bloomberg said the group includes holders of $2 billion in 2031 notes and a $742 million first-lien loan. The notes fell to 42 cents on the dollar Thursday.
More context
JetBlue creditors are organizing with restructuring advisers as the airline faces cash burn and elevated oil prices, according to reports by The Wall Street Journal and Bloomberg citing people familiar with the matter. Bloomberg reported that the group includes holders of $2 billion in notes due 2031 and a $742 million first-lien loan. The creditors are working with PJT Partners and Akin Gump Strauss Hauer & Feld, Bloomberg reported.
The Wall Street Journal reported the notes plunged to 42 cents Thursday, then recovered slightly to the mid-40s Friday, after trading near 80 cents earlier this month. JetBlue shares also hit record lows this week. A JetBlue representative told the Journal the airline is focused on strengthening revenue and building a more profitable business. The company plans to update its outlook at its third-quarter earnings call Tuesday.
Was this story useful?
What was the main problem? (optional)
Reporting
- viewfromthewing.com — JetBlue Creditors Hire Bankruptcy Advisers—As $2 Billion In Frequent Flyer Debt Hits 42 Cents On The Dollar
- tradingview.com — JetBlue creditors hire restructuring advisors as bonds, stock drops - WSJ — TradingView News
- theaviationhub.co.uk — JetBlue Creditors Hire Bankruptcy Advisers as Bonds Crash to 42 Cents
- Seeking Alpha — JetBlue creditors hire restructuring advisors as bonds, stock drops - WSJ (JBLU:NASDAQ) | Seeking Alpha
- The Wall Street Journal — Exclusive | JetBlue Creditors Huddle With Restructuring Adviser as Bonds, Shares Sink - WSJ
- Bloomberg — JetBlue Lenders Organize After Stock, Debt Fall to Record Lows - Bloomberg
- onemileatatime.com — JetBlue Creditors Hire Advisers As Stock & Bonds Sink, Bankruptcy Looms
Verifier’s note
The WSJ and Bloomberg report that JetBlue creditors are working with advisers as the airline’s shares and debt fell, matching the proposed event. The reports are dated October 23–24, within the relevant time window.