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Ministry mulls options for debt-ridden Eurolot

PR dla Zagranicy
Nick Hodge 18.11.2014 09:44
The passenger airline is deep in debt and may have to be subjected to a controlled bankruptcy procedure.

photo
photo - wikipedia

Eurolot, which operates domestic and European flights, was originally a subsidiary of Poland's national airline LOT.

It now belongs to the State Treasury (62.1 percent) and state-owned TF Silesia (37.9 percent).

“The company's situation is difficult,” Treasury Ministry spokesperson Agnieszka Jablonska-Twarog and Eurolot spokesperson Karolina Bursa told daily Dziennik Gazeta Prawna.

They declined to state the value of the firm's liabilities, however.

The ministry has hired international consultancy PwC to find the best option for Eurolot.

“It will devise a restructuring plan for the company, together with its management board, by the end of the month,” Jablonska-Twarog said.

“The goal of the plan is to show what are the further possibilities for the business, if any.”

Meanwhile, the airline's trade unions have been more candid about the extent of the airline's debts.

Unionists who talked to the daily claim that the debt may be as much as 100 million zloty (23.7 million euro).

Union members also said that Eurolot will end 2014 with a net loss of between 10 and 20 million zloty (2.36-7.73 million euro).

Such a result would be better than the one recorded in 2013 and especially 2012, when there was a net loss of 57 million zloty (13.5 million euro).

Sources in the Treasury Ministry said that a controlled bankruptcy procedure may be a solution for Eurolot.

Another option had been to merge it with LOT, but that policy is now now impossible as it is not envisaged in the latter's restructuring plan, which is under scrutiny from the European Commission. (kw)

tags: eurolot
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