CSA's creditors have so far registered debts worth CZK 19.4 billion in insolvency proceedings

by   CIJ News iDesk III
2021-09-07   11:46

Creditors of indebted Czech Airlines (CSA) have so far filed claims for more than CZK 19.4 billion in insolvency proceedings with the airline. There are around 5,900 registered creditors of the company. The insolvency court has so far reviewed the debts for approximately CZK 845 million. This follows from the current information of the Municipal Court in Prague. CSA has been in bankruptcy since March, but its operations continue. The company declared a plan for reorganization with the aim of rescuing it.

On Monday, the Municipal Court reviewed another part of the registered claims. So far, it has registered 5,675 applications, and there are about 200 more creditors. So far, the court has assessed over half of them for a total of CZK 845 million. However, according to information from the insolvency administrator, as of 19 August, the total amount of unsecured receivables was CZK 19.41 billion. This includes large receivables from Airbus and Airbus Canada Limited Partnerhip. In its own proposal for insolvency, CSA stated debts worth CZK 1.8 billion.

Already in June, the court, in agreement with creditors, approved the reorganization of CSA, which will be led by the parent Smartwings. The role of insolvency administrator has been performed by the Karviná company Inskol since March, represented by Michael Šefčík. The court also commissioned Grant Thornton to draw up an expert opinion assessing CSA's assets, which would be distributed to creditors in the event of the company's bankruptcy. According to the report, the substance is CZK 172 million, while according to this report, the airline ended up losing more than CZK 2.64 billion last year.

CSA was hit by the effects of the coronavirus epidemic, the carrier had to cancel a large number of connections. He laid off about 300 workers last year due to losses. In February, the company announced to the Labor Office its intention to lay off all 430 employees. In this context, CSA pointed out that this is one of the steps in the planned reorganization, and the intention does not necessarily mean the release of everyone.

Source: CTK