SkyGreece Saga Continues, Bankruptcy Looms

Photo: Vasilis Porgiazis

Declaring bankruptcy appears to be SkyGreece’s next step according to media reports.

Canadian media report that a letter had been sent to the Canadian Transport Agency (CTA) on Thursday, by law firm Paliare Roland Rosenberg Rothstein LLP indicating that SkyGreece had filed a notice of intention to seek bankruptcy protection and begin restructuring proceedings.

The discount carrier had until Thursday to respond to a preliminary ruling from the Canadian Transport Agency (CTA) that it had failed to meet its contractual obligations to passengers. But late on Thursday, the company replaced its homepage with an error message.

According to the said document, the court-supervised restructuring proceedings will ensure that all stakeholders, including passengers, will receive fair compensation for their claims.

As the trustee for SkyGreece, Ernst & Young Inc will be communicating with the carrier’s creditors and customers in efforts to establish contact points through which creditors can provide and obtain information.