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Report: Etihad Airways faces debt restructuring or possible legal action

The owners of the Emirati airline's debt submitted a restructuring proposal and are waiting to hear back.
A plane of Etihad Airways company is seen at Minsk international airport near the village of Slabada, Belarus, May 19, 2016.  REUTERS/Vasily Fedosenko - D1AETKFQNAAC

Etihad Airways must restructure its debt or face possible legal action, Reuters reported Thursday. It is the latest piece of difficult news for the airline, which has struggled amid the downturn in international travel.

The United Arab Emirates-based airline has $1.2 billion in debt owned by both Emirati and international investors. The proposal is to extend the maturity of the debt by a maximum of three years in exchange for Etihad or its owner, Abu Dhabi, repaying the loans, Reuters wrote, citing two sources involved with the deliberations.

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