Czech Airlines insolvency petition outlines scale of financial burden

Czech Airlines’ insolvency petition sets out the scale of the company’s financial problems, which it partly attributes to the inability to source rescue funding from the Czech government. The company has 266 creditors, with the total liability to suppliers amounting to Kc809m ($37.1m) as of 25 February, its petition to a Prague municipal court states. But the petition adds that there is a debt of nearly Kc1 billion to “hundreds of thousands” of passengers who are owed for the cancellation of flights. “[Czech Airlines] is unable to meet these obligations owing to a lack of liquid funds,” the petition states, adding that the company’s liabilities exceed the value of its assets. For this reason the [company] is also in a state of over-indebtedness.”<br/>