Skygreece Airlines (Athens) is set to file for bankruptcy protection in Canada roughly two weeks after it announced it had temporarily suspended operations. The filing will protect the company and its assets from creditors and others during the course of the restructuring of its financial affairs and operations. Financial services firm, Ernst & Young Inc. (EY) has been appointed as the trustee and will monitor and assist the company during the process.
"It was determined by the company’s board of directors that as a result of the company’s current financial situation, seeking protection under the Bankruptcy and Insolvency Act (BIA) (Canada) would be in the best interests of the company and all of its stakeholders," the airline said. "This was a very difficult decision for SkyGreece."
SkyGreece said the Greek economic crisis had impacted its operations resulting in an immediate and dramatic reduction in ticket sales. In addition, recent technical issues with its sole aircraft, a B767-300(ER), had resulted in the airline incurring significant additional expenses, it said.
