B&H bankruptcy proceedings to begin

Tuesday, February 9, 2016


The Federation government of Bosnia and Herzegovina has called on Sarajevo Airport to open bankruptcy proceedings against the indebted B&H Airlines, which has been grounded since last June. "B&H Airlines is in a very difficult state due to outstanding liabilities. Electricity, telecommunications and other utilities have been switched off and access to the company's headquarters are prohibited", the government said in a statement. The carrier has outstanding debt towards the asset management company HETA amounting to 25.4 million euros for the financial lease of two ATR 72 aircraft. Furthermore, it owes 3.3 million euros to Sarajevo Airport, 2.2 million to foreign suppliers, 1.4 million in unpaid wages to employees and 716.000 euros to the national postal service. In October, the Bosnia and Herzegovina Directorate of Civil Aviation revoked B&H Airlines' Air Operators Certificate (AOC).

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