Air Lituanica to file for bankruptcy in court

DELFI / Šarūnas Mažeika

On Thursday, the company’s creditors voted against an out-of-court bankruptcy process, the airline said in a press release.

That proposal was rejected by one creditor – Vilniaus Šilumos Tinklai (Vilnius Heating Grids), a municipal company that holds 27.78 percent of creditor votes. The out-of-court bankruptcy process needed the approval by three quarters of creditors to go ahead.

The airline, which is majority-owned by Vilnius local authority, said in a statement on May 22 that it was ceasing operations. A week later, it announced plans to file for bankruptcy.

Air Lituanica last year suffered a loss of around 10 million euros, up from a loss of 5 million euros recorded in 2012-2013.

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