EA Partners I adjourns meeting for holders of 6 7/8% notes due 2020

By Sarah Lizee

Olympia, Wash., April 28 – EA Partners I BV adjourned a meeting for holders of its $700 million 6 7/8% notes due 2020 (ISIN: XS1293573397) under which the issuer is seeking approval to file proofs of claim in the insolvency proceedings of Alitalia and Air Berlin.

The meeting was adjourned to 5 a.m. ET on May 11.

The company said the original meeting at 6 a.m. ET on April 6 was adjourned due to lack of a quorum.

As previously reported, EA subscribed for $131,922,000 of Alitalia’s 6.31% notes due 2020 on Sept. 18, 2015, and the notes are still outstanding. Payments of principal and interest made by Alitalia to EA are used to help fund the payment and principal under EA’s 6 7/8% notes.

EA also entered into a facility agreement with Air Berlin on Sept. 18, 2015 under which it extended a loan facility to Air Berlin in an aggregate amount of $131,922,000, which is still outstanding.

The insolvency proceedings of Alitalia and Air Berlin caused events of default under their debt obligations, and Alitalia and Air Berlin have both stopped making interest payments due to EA.

EA is seeking approval to proceed to file the proofs of claim in the Alitalia insolvency proceedings without requirement to receive a prior instruction from the note trustee, and to have conduct of any further proceedings, claims or actions, including defending any proceedings claims or actions as may be necessary and/or incidental to the Alitalia insolvency proceedings, without the need for any further instructions from the note trustee or any other person.

The company is also seeking an instruction from the noteholders to the Alitalia note trustee requiring it to instruct the Air Berlin security trustee to release certain rights relating to the Air Berlin debt to permit EA to make a claim in the Air Berlin insolvency proceedings and have conduct of any further proceedings, claims or actions.

For all of the extraordinary resolutions, the quorum is one or more eligible persons present and holding or representing in the aggregate more than 50% of the outstanding notes. Each of the extraordinary resolutions must be passed by a majority of more than 75% of the votes cast.

EA Partners is an Amsterdam-based special purpose vehicle tied to Abu Dhabi’s Etihad Airways, a provider of air transportation services.

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