Bankruptcy forces tender (158 words)

Published: 6/26/2001

On 19th June, the perennially troubled Ust-Ilimsk Airport stopped operations, for the second time in the last two years. The airport, situated within the Irkutsk region, came back into operation under administration early last year, but considerable wage arrears and debts have thwarted plans to restructure its debts. Since external administration was introduced, however, the situation has deteriorated further and, on 22nd May 2001, when the external administration period was over, a new manager was appointed to sell the airport.To date the airport authorities reportthat they have recieved interest in the airport from bidders in Moscow and Bratsk, the neighbouring region. To succeed in gaining control of the airport it is reported that paying back the airport's debts of $1.8m and guaranteeing flights to the local regional centre of Angara. The timing for the tender has not yet been announced, nor has a starting price been set. According to Yevdokia Sergy, Head of the Property Management Committee of Ust-Ilimsk, the aircraft will be sold to a single bidder, if possible, in order to maintain operations at the airport and prevent closure. The second option will be to break up the company, although no buyer is reported, even for the assets individually.

Article ID: 2609