Slovak Airlines Enters into Bankruptcy Proceedings

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.