Counting the cost of Alitalia’s demise

Analysts have begun trying to pick out the best and worst case scenarios for bondholders and creditors to Alitalia. EA Partners I’s 6.875% senior notes due 2020 (offered at 92, yield of 9.8%) and EA Partners II’s (EAP-II) 6.75% senior notes due 2021 (offered at 90.5, yield of 9.7%) issued by Etihad Airways and its equity partners – Etihad Airport Services, airberlin, Air Serbia, Air Seychelles and Alitalia – last year may not be too adversely affected, according to a note from JPMorgan Securities, and the sell-off in the bonds prompted by Alitalia entering administration may even have created an