Air Belgium on the verge of bankruptcy
Air Belgium is again on the verge of bankruptcy, L’Echo reports on Friday. A court has given the airline two weeks to find a solution to its financial problems.
For almost a year, Air Belgium has been protected from its creditors as part of a judicial reorganisation. However, it has been unable to find a new investor, despite the need to do so following a 40 per cent drop in sales after it stopped operating passenger flights in September. The company is also incurring an annual loss of 22 million euros.
In the short term, the company needs to find at least 18 million euros, according to L’Echo.
Air Belgium appeared before the Nivelles corporate court on Tuesday. The court granted an extension of two weeks, as an unknown investor was reported to have come forward after the deadline. This investor is said to be ready to come on board provided the Walloon government gives its backing, which L’Echo describes as unlikely.
Air Belgium declined to comment.
© BELGA PHOTO NICOLAS MAETERLINCK
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