Aircraft manufacturer Airbus, based in France, has filed for insolvency proceedings with Czech Airlines (CSA) for approximately CZK 17 billion. This was stated Thursday by E15.cz server. Debts are related to aircraft orders. In March, the Municipal Court in Prague declared CSA bankruptcy at the request of the carrier, in which CSA stated total debts of 1.8 billion crowns. According to the server, the company now did not want to comment on the debt to Airbus with a reference to trade secrets.
According to the server, Airbus states that CSA did not repay its invoices, which, after taking into account interest on arrears, are worth CZK 6.4 billion. The airlines still have to pay another CZK 2.1 billion from the same contracts, but the due date has not yet come. In addition, Airbus has registered contingent receivables for CZK 8.5 billion, which CSA must repay if it withdraws from the purchase agreements. Receivables consist mainly of invoices for four A220-300 aircraft and three A321XLR aircraft, which CSA ordered in 2019, but subsequently were unable to repay according to the server.
The carrier refused to comment on Airbus’s receivables, writes E15.cz. According to the server, CSA spokeswoman Vladimíra Dufková only stated about the agreements with Airbus that this is a trade secret.
Airbus’s receivables will now be reviewed by CSA’s insolvency administrator Michael Šefčík from Inskol. According to him, the evaluation of eligibility will take some time due to the enormous number of applications, the server said. To date, approximately 5,500 receivables have been registered in insolvency proceedings with CSA, and according to Šefčík, their number will probably continue to grow. Passengers who request a refund of payment for tickets for canceled flights apply to the proceedings. The court will assess all registered claims in June. A meeting of all creditors should take place immediately afterwards. It is to be decided on another solution to CSA’s bankruptcy.
CSA was hit by the effects of the coronavirus pandemic, which significantly reduced travel in the Czech Republic and other countries. The company had to cancel a large number of connections. According to E15.cz, CSA lost about CZK 1.5 billion last year.
Source: CTK and E15.cz
