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February 26, 2021

SkyEurope Airlines says gets creditor protection

BRATISLAVA – Slovak-based SkyEurope Airlines said on Monday it had obtained creditor protection from a Bratislava District Court to restructure its debt, as it seeks new equity investors. The budget airline, listed in Vienna, said in a statement it would continue the full operation of scheduled and charter flights, and preserve jobs.

“There has been ongoing investor interest in SkyEurope and its business plan, although the company’s debt has been a barrier,” SkyEurope said. “This period of reorganisation under creditor protection will give the company time to restructure its debt and become attractive for new equity investment.” The airline has suffered for months from declining passengers numbers as the slowing global economy weighs on the sector, and four out of its 14 planes were already grounded. SkyEurope with bases in Prague, Bratislava, Kosice and Vienna never posted a profit in the six years of its existence. The company posted a net loss of 18.94 million euro in its fiscal year ending Sept. 30, 2008, compared with a 15.68 million euro loss in the previous fiscal year. SkyEurope will continue to fly its scheduled and charter routes as planned, honouring all current and future flight tickets. New investment is sought to provide additional liquidity to support the next phase of the company’s development and SkyEurope recently appointed investment bank Reynolds Partners for that process.

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