Air Lituanica CEO, Nerijus Jukna, will ask for the creditors’ approval for an out-of-court bankruptcy process, the airline has said in a press release.
“Consultations with the company’s largest creditors have shown that they see no obstacles for an out-of-court bankruptcy procedure, therefore I’ve decided to propose this option, which is both simpler and shorter. The company’s shareholders and its management board have not made any decisions related to the continuity of the company’s operations. Hence the bankruptcy is the only alternative left. Now it is the most important to safeguard the interests of the company’s creditors,” the press release quoted Jukna as saying.
The airline, which is majority-owned by the 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.