DLA Piper and Serbian law firm Samardzic Law Office have represented Etihad Airways on its acquisition of 49 percent stake in loss-making Serbian national airline JatAirways.
As part of a strategic partnership between the two airlines Etihad has also been awarded a five year management contract for the Serbian airline, which will be rebranded as Air Serbia The strategic partnership includes a fleet of next generation, brand new aircraft, and a new integrated network of international destinations.
Etihad will make available a $40 million loan facility which will be converted into equity on Jan. 1, 2014. This will be matched by an equal funding injection by the Government of Serbia. Etihad and the government of Serbia will also each provide further funding through shareholder loans and other funding mechanisms of up to $60 million to meet working capital requirements and support network development for Air Serbia.
The DLA Piper team was led by partners Jon Hayes and Mark Franklin, who were assisted by partners Alexandra Kamerling and Sarah Day.
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