Slovak Airlines Enters into Bankruptcy Proceedings

6. März 2007, 00:00

Slovak Airlines (SA) entered into bankruptcy proceedings on Friday, director of the air carrier, Christiane...

Slovak Airlines (SA) entered into bankruptcy proceedings on Friday, director of the air carrier, Christiane Boehm-Mayer, told reporters on Monday.

The bankruptcy declaration was lodged with the Bratislava First District Court, which is to appoint a court-appointed trustee within a 10-day term.

The insolvency procedure is expected to last for several months, Boehm-Mayer said.

SA was expected to declare insolvency already in February when its majority shareholder, Austrian Airlines (AUA), seized two of SAs three-aircraft fleet.

The AUA resorted to this move after it found SA had hidden pre-sale liabilities in the amount of SKK 206 million (EUR 6 million) and the government, then-owner of the airline, refused to cover them by the AUA-prescribed deadline of December 2006.

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