Majority of JetBlue lenders sign cooperation deal, Bloomberg News reports

Nov 11 (Reuters) – A majority of JetBlue Airways’ creditors have executed a cooperation agreement that would prevent the company from striking side deals with lenders in the ​group, Bloomberg News reported on Wednesday, citing people familiar ‌with the matter. About 55% of the airline’s lenders have joined the agreement, and the initial members can receive a carve-out premium provision that could provide better recoveries to them than to others in the group, ‌the ​report added. Here are more details: • The creditor ⁠group, which holds the ⁠airline’s bonds due in 2031 and its first-lien loan, is working with advisory-focused investment bank PJT Partners and law firm Akin Gump Strauss Hauer & Feld, according to the report • ​A separate minority group of creditors has also formed and is working with another law firm Hogan Lovells Cadwalader, Bloomberg ⁠News reported • JetBlue has about $8.4 billion ⁠in debt and finance lease obligations and has ​not reported an annual profit since 2019 • The carrier has ​been grappling with higher fuel costs and expects a ‌full-year adjusted operating margin between negative 4.5% and negative 6.5%, compared with an earlier July forecast of negative 2% to negative 5% • JetBlue faces loan and lease repayments of $477 million in ⁠2027 and $582 million in 2028, before a larger $1.8 billion debt maturity in 2029, according to its latest quarterly filing • The airline paid $372 million ⁠in net cash ‌interest in the first nine months of ⁠the year • JetBlue CEO Joanna Geraghty told Reuters ​in ‌October that the airline was not in ​talks with creditors ⁠and had no plans to restructure its debt, despite investor concerns sparked by a sharp selloff in its bonds • JetBlue, PJT Partners, Akin Gump and Hogan Lovells did not immediately respond to Reuters’ requests for comment (Reporting by Apratim Sarkar in Bengaluru; Editing ​by Leroy Leo)