Bosnia’s BH Airlines faces bankruptcy procedure

Bosnia’s BH Airlines faces bankruptcy procedure
By bne IntelliNews March 25, 2016

Bosnia & Herzegovina's Sarajevo International Airport has filed a proposal with a Sarajevo court to launch bankruptcy proceedings against state-owned air carrier BH Airlines over financial claims of BAM6.5mn (€3.3mn).

BH Airlines, valued at BAM18mn, has total debts of over BAM40mn. The company has been facing financial difficulties for the last decade.

After considering the legal requirements, Sarajevo airport has concluded that the conditions have been met to ask the court to initiate bankruptcy proceedings against BH Airlines, news agency Akta reported on March 25, quoting sources from the Sarajevo airport.

There will be no protests. BH Airlines employs only 45 people, which received their last salary payments for October, while social and health contributions have not been paid for four years, the head of BH Airlines' trade union Elvis Ziga was quoted as saying.

The airline was previously bailed out by the Bosnian government in early 2015, when Sarajevo extended a short-term package to allow the carrier to continue operating scheduled flights and unblock bank accounts that had been frozen by the local arm of Hypo Alpe-Adria-Bank.

BH Airlines’ largest debt is the BAM25.5mn it owes to HETA company, for leasing two aircraft.

 

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