JetBlue's Loan Companies Hire Special Advisors Over Repayment Concerns Of $8.4 Million Debt

A group of JetBlue Airways creditors has hired restructuring advisers PJT Partners and law firm Akin Gump amid growing concerns about the airline’s ability to manage debt and fund a turnaround. Reports say creditors include investors holding about $2 billion in bonds due in 2031 and a $742 million first-lien loan. The appointments suggest lenders are preparing for possible negotiations, but they do not indicate JetBlue has filed for bankruptcy or agreed to restructure. JetBlue CEO Joanna Geraghty told Reuters on October 27 that the airline was not in talks with creditors and was not considering restructuring. Meanwhile, JetBlue debt has slid: the $2 billion bond issue traded around 47 cents on Oct. 26, down from roughly 80 cents earlier in the month, and its yield rose above 30%.