The hiring follows unsuccessful auctions of defaulted claims on two insolvent affiliates of the Abu Dhabi-based airline, Air Berlin and Alitalia, said the people, asking not to be identified because it’s private.
A spokesman for Dechert confirmed a group of investors had appointed the firm but declined to comment further. A spokesman for Etihad declined to comment on the hiring. Officials at EA Partners didn’t return calls and emails seeking comment.
Etihad created two EA Partners vehicles to provide financing for several airlines in which it owned stakes, thereby minimising the burden on its own balance sheet. The two entities raised $1.2bn by issuing bonds in 2015 and 2016 which are now quoted at less than 60% of face value, according to data compiled by Bloomberg.
The affiliates funded by the vehicles, including Air Serbia, Jet Airways India Ltd, and Air Seychelles, each guarantee as much as 20% of each bond. The insolvency of Air Berlin and Alitalia last year prompted the auction of EA Partners’ claims linked to those carriers.
Anoa Capital, a broker controlled by German financier Lars Windhorst, arranged the deal at the time with Abu Dhabi-based ADS Securities and Goldman Sachs Inc.
EA Partners said last month it had received a $4.2mn offer from an unnamed bidder in the auction of the $463mn of defaulted claims to Air Berlin and Alitalia.