Smartwings has prepared a reorganization plan for the debt-ridden Czech Airlines. The insolvency court on Wednesday approved a report on the plan, but its adoption is yet to be decided by creditors. ČSA has been bankrupt since last March, and in June the court allowed its reorganization, which is being handled by parent company Smartwings.
The report should contain sufficient information to enable the creditor to decide whether to accept the reorganization plan. In particular, this should include the performance offered by the company. Creditors must receive the report in advance.
Last year, Smartwings asked the court to extend the deadline for a reorganization plan for ČSA until February this year. The company needed more time to negotiate with Airbus, one of the biggest creditors of debt-ridden ČSA.
Creditors of the debt-ridden ČSA have so far filed claims worth around CZK 20 billion in the airline’s insolvency proceedings. The role of insolvency administrator is performed by the Karviná-based firm Inskol, represented in the proceedings by Michael Šefčík.
The court has also commissioned Grant Thornton to prepare an expert opinion with an assessment of ČSA’s assets, which would be distributed among creditors in the event of the company’s bankruptcy. According to the statement, the essence amounts to CZK 172 million, while the airline ended last year with a loss of more than CZK 2.64 billion.