BEL finally ceases operation (300 words)

Published: 9/28/2000

The saga surrounding the fate of Latvian carrier, Baltijas Ekpresa Linija (BEL) took a further step closer to conclusion with the announcement that a court in Riga had declared the troubled carrier insolvent. The court's action follows the non-renewal of the carrier's operator licence at the end of August and a court order in the middle of August forbidding the carrier to continue trading. An order subsequently ignored by the carrier with a charter flight to Turkey on the 18th of August, leading to the aircraft seizure on its return to Riga. According to - GAO International Airport Riga, the airline owes the airport $154,656 and $5,000 for the maintenance and parking. According to Robert Eglitis, the temporary administrator appointed by the court, the assets of BEL are $765,000 and the liabilities of $606,612. The assets include a Tu-154B, reported to be overvalued in the $765,000 of assets. BEL's primary creditors are reported to be Overseas Credit Management Ltd., Lateko Bank, Parex Bank and the General Director of BEL Boris Belousov. According to Eglitis, BEL's employees pledged their flats to secure the loan from Parex Bank. In the view of the airline if it was allowed to operate it could resolve if financial situation and return to solvency. The authorities may be reluctant to countenance such a move given the serious risk of passengers being stranded in the future. Particularly after the stranding of holidaymakers from the18th August flight to Turkey . The passengers were finally returned by an aircraft leased from Estonian carrier ELK, curiously owned by the BEL's General Director's brother, which in turns owns 40% of BEL along with a company names BARS Ltd.

Article ID: 2094