MOSCOW, September 13 (RAPSI) – The Commercial Court of St. Petersburg and Leningrad Region has declared Transaero air carrier bankrupt, according to the commercial courts’ database.
The court initiated the bankruptcy proceedings for a term of six months.
Transaero found itself unable to pay its debts valued at 250 billion rubles (about $4 billion) in 2015. Government-approved plan of transferring 75% of company’s shares to Aeroflot failed. Its problems resulted in a large number of flight cancels and delays.
In October 2015, Sberbank and Alfa Bank filed bankruptcy petitions against the troubled airline. The Commercial Court of St. Petersburg and Leningrad Region initiated bankruptcy procedure against Transaero on December 16.
On November 17, 2016, Transaero filed an application with the Commercial Court of St. Petersburg and Leningrad Region seeking to drop the case. Transaero managers submitted the company’s business resumption plan. The airline’s management headed by Director General Alexander Burdin analyzed alternatives which could make it possible to return money to creditors via relaunching the airline on the base of its assets.