Hong Kong Airlines (HX, Hong Kong Int'l) has defaulted for the third time on consecutive semi-annual instalments of interest payments on a USD683 million perpetual bond issued in 2017 through Blue Skyview Company, a vehicle belonging to the airline.

The three deferrals on the notes mean that the accumulative interest due has now reached around USD149 million, local media reported on July 7 citing a disclosure to investors.

As a result of the failure to settle, the rate of the interest in July 2020 was raised to 12.125%, and missing the payments in January and July 2021 means that the rate will increase to 15.76%.

Hong Kong Airlines reportedly first warned investors that it would default on the payments last July. That implied at the time that it would have to bear a higher interest rate, 12.125% instead of 7.125%.

With Blue Skyview’s new announcement to investors that the interest originally scheduled to be paid on July 26 will be deferred again, the total owed, based on the same 15.76% calculation, is about USD149 million.

Hong Kong Airlines did not immediately respond to ch-aviation’s request for comment.