BREAKING: EA Partners I Confirms Debt Obligation Event of Default as Jet Airways Misses March 19 Interest Payment; Remarketing Event Stalls as Agent Resigns

Relevant Document:
Notice

EA Partners I announced today that a debt obligation event of default has occurred under the 6.875% 2020 notes because obligor Jet Airways has missed an interest payment due on March 19 due to “temporary liquidity constraints” at Jet Airways.

In a notice today, EA Partners I said that because “the funds standing to the credit of the Liquidity Pool are less than the Cure Limit, a Remarketing Event has also occurred in respect of the Jet Airways Debt Obligation. However, because the previous Remarketing Agent has resigned, and the Issuer has not been able to appoint a successor, the Debt Obligation Remarketing in respect of the Jet Airways Debt Obligation cannot commence at this time.”

EA Partners added that due to “the inability of Issuer to unilaterally agree any fee arrangement with a successor Remarketing Agent, the Issuer is of the view that the Noteholders will be required to approve the appointment (and any related fee arrangement) of any successor Remarketing Agent.”

The issuer confirmed that it has used “commercially reasonable efforts” to enter into an INR replacement hedging agreement on terms no less favorable to the noteholders than the INR options original agreement. However, so far EA Partners I has not been able to enter into an INR replacement hedging agreement on terms no less favorable to the noteholders than the INR options original agreement.

The issuer said that the main reason for this is that the potential counterparties are not prepared to offer terms to the issuer that are at least as favorable as the terms contained in the INR options original agreement.