Serbian media outlet N1 has reported that Etihad, a 49% shareholder in the national carrier, had refused a request to write-off 82% of Air Serbia’s $120 debt to the Emirati group.
In July, Air Serbia requested the swinging write-down in its debts from Etihad, with a London Stock Exchange release saying that without forbearance on that scale the carrier would go insolvent.
It appears that Air Serbia’s request has been rejected, with N1reporting that Etihad expects to be paid in full, “the management board feels that Air Serbia’s proposal to reduce the amount which was set in a loan contract by 82 percent is unacceptable,” said documents seen by the news outfit.
Etihad Airways partners have apparently inform Air Serbia the proposal has been rejected.
Etihad Airways entered into a JV with Air Serbia’s predecessor JAT Airways in August 2013 taking a 49 % share in the flag carrier, with the Serbian government holding the remaining 51%.