Czech Airlines

William Malcolm

Auditor Values Czech Airlines Assets At 172 Million Crowns

Indebted Czech Airlines (ČSA) now has assets worth over 172 million crowns, according to an expert opinion commissioned by an insolvency court. This follows from a report prepared by Grant Thornton, which is published in the insolvency register. According to the report, the airline, which is now in bankruptcy, ended up losing more than 2.64 billion crowns last year.

In June, Grant Thornton commissioned the insolvency court to assess the assets. In the event that CSA ended up in bankruptcy, the company’s assets would be divided between secured and unsecured creditors. Secured creditors, such as Lufthansa Technik or Quiver beta, would share over 58 million crowns, according to the report. Unsecured creditors would then receive a share representing a percentage of their claim.

The quantified assets of CSA also include the costs of eventual liquidation, which Grant Thornton estimated at approximately 147 million crowns.

CSA has been in bankruptcy since March. The court then granted the company’s own motion. The airlines acknowledged outstanding receivables for approximately 1.8 billion crowns. According to the company, in the insolvency petition, about a billion crowns from receivables are unpaid or unpaid tickets for canceled flights. The court is now reviewing part of the receivables from CSA, in June it has so far recognized debts worth 821 million crowns, but this is not the final amount. At the same time, the insolvency court approved the reorganization of the company in June. Its plan will be created by Smartwings, which is the parent company of CSA. CSA’s operations continue, the aim of the reorganization is to save the airlines.

CSA was hit by the effects of the coronavirus epidemic; during the crisis, the carrier had to cancel a large number of connections. He laid off around 300 workers last year due to losses. In February, the company announced to the Labor Office its intention to lay off all 430 employees. In this context, CSA pointed out that this is one of the steps in the planned reorganization, and the intention does not have to mean the release of everyone.