Czech Airlines and Smartwings declare moratorium on debts

by   CIJ Linguistics
2020-08-28   07:24

The Prague City Court complied with a request from Czech Airlines and Smartwings and declared a moratorium on their debts because of coronavirus. Effectively, it means that the due date for their debts has been deferred for a maximum of three months. In extreme circumstances, this could be extended by an additional three months, according to documents filed with the insolvency registry. The most important result is that the companies will not be able to face bankruptcy proceedings and their planes can continue to fly. Smartwings spokeswoman said the company resorted to the moratorium because it was profitable before the health crisis and expected to return to profit after it. "From an operations standpoint, nothing will change for Smartwings and CSA," she said. "Both companies will secure all planned flights according to the flight schedule and they'll continue to renew further links depending on the development of the epidemiological situation in individual countries and travel restrictions."