MOSCOW, October 23 (RAPSI) – The Moscow Commercial Court has declared Transaero air carrier’s subsidiary, Transaero-Finances, bankrupt, the court’s ruling reads on Monday.

The court initiated the bankruptcy proceedings for a term of six months.

According to the company’s temporary manager Yana Makarova, three creditors seek nearly 8.5 billion rubles (nearly $147.8 million). Recovery of the company’s solvency is impossible, the manager said.

In May, the court granted a motion filed by VTB bank seeking to include over 4 billion rubles (about $70.5 million) debt owed by Transaero-Finances organization in the creditors’ demands list. In addition, Transaero airline also demanded 3.9 billion rubles (about $68.7 million) from Transaero-Finances.

On January 27, the court ruled to introduce supervision procedure against Transaero-Finances on the request of Transarero with latter demanding 172.5 million rubles (about $3 million) in debt.

On September 13, the Commercial Court of St. Petersburg and Leningrad Region declared Transaero bankrupt.

Transaero found itself unable to pay its debts valued at 250 billion rubles (about $4 billion) in 2015. The 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.