The move, authorized and approved by its board of directors, sees the carrier filing a Notice of Intention to Make a Proposal (Notice of Intention) pursuant to the provisions of Part III of the Bankruptcy and Insolvency Act (BIA) (Canada).
In that notice, it has named Ernst & Young Inc. (EY) as the trustee in the company’s proposal proceedings and in that capacity will monitor and assist the company in its restructuring efforts.
Announcing the move, the company said that it was determined by its board of directors that as a result of the company’s current financial situation, seeking protection under the BIA would be in the best interests of the company and all of its stakeholders, noting that “this was a very difficult decision for SkyGreece.”
The carrier said in a prepared statement that the company ultimately determined that this was the best course of action to ensure that all of its creditors, including passengers, were treated equitably. While under BIA protection, the company will continue with its efforts to resume service, while determining the best way to see that all parties are compensated fairly.
For more, go to http://documentcentre.eycan.com/Pages/Main.aspx?SID=346 .