Czech Airlines

William Malcolm

Court Approves Czech Airlines Reorganization

The Municipal Court in Prague has approved the reorganization of the indebted airline CSA as part of insolvency proceedings. The reorganization plan should be drawn up by the parent company Smartwings within about four months. This follows from the court’s resolution published in the insolvency register. At Monday’s meeting, the company’s creditors also agreed on the reorganization of CSA.

CSA has been in bankruptcy since March, but its operations continue. The company declared a plan for reorganization with the aim of rescuing it. On Monday, the insolvency court recognized the creditors’ claims against CSA for more than 821 million crowns, but this is not yet the final amount. In its own proposal for insolvency, CSA stated debts worth 1.8 billion crowns.