Harju County Court was given an overview of the Estonian Air bankruptcy case today by court-appointed bankruptcy registrars Toomas Saarma and Andrias Palmits. The bankruptcy of what was until recently Estonia's national carrier is expected to be officially declared on December 29.
The court heard that Estonian Air currently has 59 million euros worth of assets. However, once the cost of the nine aircraft that the company has on lease contracts is deducted, the sum is reduced to just 8.9 millions euros.
At the same time, the carrier owes creditors 95 million euros. The majority of the debt – 85 million euros – is the bail-out money the government bumped into the company. On November 7, the European Commission ruled the aid illegal and told the state to reclaim the money, effectively forcing the carrier to fold.
After the official bankruptcy is declared on December 29, all necessary proceedings could take up to half a year to complete, the registrars told Ärileht. If some of the creditors decide to appeal their claims, the case could drag on for years, Saarma said.
Editor: M. Oll