JetBlue Creditors Form Pact to Prevent Side Deals

A majority group of creditors to JetBlue Airways Corp. executed a cooperation agreement to prevent the airline from striking side deals with individual lenders. Approximately 55% of the airline's lenders joined the accord as initial party members.

Members of the pact may receive a carve-out premium provision, a mechanism that could result in better financial recoveries for those in the agreement compared to lenders who remain outside the pact. This collective action by creditors occurs as JetBlue continues to downplay its financial peril.