SkyEurope reports reorganisation under creditor protection

www.skyeurope.com

Slovakia-based airline SkyEurope revealed on Monday that it had been granted creditor protection by a district court in Bratislava, allowing it to restructure its debt and giving it time to secure new equity investment.

The low-cost carrier, which is listed in Vienna, Austria, released a statement that indicated it would continue normal operations, and that no jobs would be lost.

SkyEurope said: “There has been ongoing investor interest in SkyEurope and its business plan, although the company’s debt has been a barrier. This period of reorganisation under creditor protection will give the company time to restructure its debt and become attractive for new equity investment.”

For the past several months, the carrier has suffered from declining passenger traffic as a result of the economic downturn. The scheduled and charter airline had already grounded four of its 14 aircraft.

For its financial year ended 30 September 2008, SkyEurope Airlines posted a net loss of 18.94 million euros, as compared with a loss of 15.68 million euros for the previous financial year.

Thanks to www.reuters.com for the above quotes, for more information on this article please visit their website.

www.skyeurope.com