Photo Credit: A JetBlue plane at New York JFK Airport Vincenzo Pace / Vincenzo Pace
JetBlue’s shares sank Monday following growing speculation that it could file for Chapter 11 bankruptcy.
As of Monday afternoon, JetBlue shares traded at $2.27, down more than 20% in the past week and on track to close at an all-time low ahead of the release of third-quarter earnings on Tuesday.
The growing speculation over a restructuring came as the carrier’s bonds entered distressed territory last week. JetBlue’s bonds that are set to mature by 2031 traded at 40 cents to the dollar, a record low. These bonds are backed by collateral tied to its loyalty program and traded at around 80 cents earlier this month, according to Bloomberg.
Some of JetBlue’s senior creditors have hired PJT Partners and law firm Akin Gump Strauss to discuss a restructuring, according to a report from The Wall Street Journal.
Over the past two years, JetBl