Aviaprad to apply for prolonged bankruptcy proceedings

18 June 2009 (15:27)

‘Aviaprad has been going through the bankruptcy proceedings for a year now, but the company’s assets still haven’t been sold. The only things we did manage to sell were the furniture, office appliances and such like items. For one, we found it really hard to sell the spare parts for aircraft. Because of these difficulties, we undertook to apply to Arbitration Court for having the bankruptcy proceedings prolonged for another six months. The court is quite likely to consent, because there is no other way out,’ Aviaprad’s trustee in bankruptcy Olga Ruschitskaya said to an UrBC representative.

‘The airline owes a total of 1 billion RUR to its creditors, including the arrears of wages (only seventy percent of which have been handed over to the workers),’ she added.

The carrier was declared insolvent by Sverdlovsk Region Arbitration Court in November 2008. The court then ruled that the company had to undergo twelve-month bankruptcy proceedings.

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