Air Serbia is in discussions with a special purpose vehicles set-up by Etihad Airways in 2015 called Etihad Airways Partners I BV and Etihad Airways Partners II BV, over the restructuring of its debt, reports local media.
The carrier had earlier told the SPV that due to Covid-19 it may not be able to meet its obligations and payments.
“Air Serbia has sent its creditors at EAP I BV and EAP II BV a joint proposal with the revised amounts and loan repayment deadlines, in good faith that a mutually acceptable solution can be reached through negotiations. It is important to note that Air Serbia, in relation to the creditors, as well as others such as banks, suppliers and leasing companies, regularly settles all of its obligations to this day”, the company said in a statement.
“The Serbian national carrier has strong support from all sides involved in the adjustment of its business and the further development of the company in these altered market conditions resulting from the Covid-19 pandemic”, it said.
In September 2015, Air Serbia took a loan for $52.9 million US from EAP I BV which matures in September 2020 with an annual interest rate of 6.96%. It also agreed a loan for $63 million with EAP II BV on May 20, 2016, which matures in June of next year.