Shareholders' meeting delayed until September (230 words)

Published: 8/31/2000

The shareholders' meeting to make a decision on the settlement of outstanding debts with creditors of Nizhni Novgorod Airlines has been postponed until 6th September. While informing the media of the intention to delay the proceedings, Mikhail Shkerev, the airline's Deputy Temporary Manager, offered no other explanation other than it came after the presentation of a report by Yevgeny Dzyubo, the airline's Temporary Manager, to the creditors committee on 25th August. According to Shkerev, the creditors have to further consider the plans for restructuring of the airline's debt and decide whether to extend the tenure of Yevgeny Dzyubo or elect another temporary manager. The decision to delay will come as a surprise to the airline's temporary management given their confidence earlier in the month that the plan to delay payment of $1m of debt for six months would be accepted by creditors, who had already offered preliminary approval according to Dzyubo. The delay of the final settlement also pushed the airline beyond the normal 18-month period for administration under temporary management, which expired on 28th August but can be extended by the creditors of the company. The airline's debt to the creditors is over 60 m rubles, of which 70% is owed to three main creditors: Nizhni Novogorod Airport, the ATC service, and meteorlogical services.

Article ID: 2043