In a very (very) short statement Etihad Airways today expressed its disappointment on the Alitalia bankrupcty proceedings:
Etihad Airways said today it was disappointed that despite its significant investments in Alitalia, the Italian airline had today entered extraordinary administration.
Etihad owns 49% of Alitalia. On 8 August 2014, Etihad Airways and Alitalia announced that they had signed the transaction implementation agreement which resulted in a €1,758 million investment by several shareholders to build a reinvigorated Alitalia as a competitive, sustainably profitable business. Etihad Airways’ investment of €560 million was provided through a combination of equity injections, asset purchases and other financing facilities and funding arrangements to re-structure the airline’s balance sheet.
One can thus understand that Etihad is not very happy with the latest developments and thus supports the decision to go into extraordinary administration (equivalent to Chapter 11 in the U.S.)
Etihad has vowed today that it will no longer pour money into Alitalia after the Italian carrier’s board asked to be put under special administration.
Without support for restructuring, “we are not prepared to continue to invest,” Etihad’s president James Hogan said in an emailed statement. “We therefore support the necessary decision of the Alitalia Board to apply for extraordinary administration.”
