Judicial administrator Alvarez & Masal has recommended to a court that Oceanair Linhas Aéreas S.A., which used to operate as Avianca Brasil (O6, São Paulo Congonhas), should be declared bankrupt, the Brazilian news agency Folhapress reported on November 14.
Responsible for monitoring the company's judicial recovery process, the administrator said that Oceanair was not viable and could not envisage conditions for the fulfilment of its debt repayment plan.
The move follows the Brazilian carrier's protracted period of inactivity given the withdrawal of its Air Operator Certificate (AOC) in May this year.
“The directions taken by the company seem to make it impossible to maintain the judicial recovery in the face of a complete emptying of business activity,” the global professional services firm declared in a petition filed with the First Bankruptcy Court of Sao Paulo.
Alvarez & Masal added that the company no longer owned any aircraft, nor did it have any employees on its premises.
“If a company is no longer viable, the planned remedy for such a situation is bankruptcy,”...