Komiavia begins to clear some of its debts, but remains in difficult circumstances

Published: 6/16/1999

According to a report in the regional newspaper, Kominform, Mr Aleksey Rumyantsev, Temporary Manager of Komiavia, the Komi Republic-based air carrier, has claimed that the company will be able to clear debts of 33m rubles, owed to employees and various lenders. Mr. Rumyantsev stated that 21m rubles of back wages had been paid to former employees. He added that, in the coming months, Komiavia plans to cover 3m roubles of unemployment compensation and debts to various other organisations. The airline has been in administration, following bankruptcy proceedings, since March 1997 (www.concise.org May 19th 1999) The company will still not be able to cover the total extent of its debts amounting to 74m roubles. The main source of funds to cover the indebtedness and to provide working capital, is the airline"s assets and accounts payable. To date, the airline has raised 18m roubles from aircraft and building sales. According to the committee dealing with its bankruptcy, this represents about 70% of the airline"s available resources. While the value of the remaining assets on the balance sheet is around 300m roubles, Mr Rumyantsev claims that the market value of the buildings, aircraft and infrastructure does not exceed 20% of the present book value, owing to their poor condition. Komiavia has sold 24 aircraft and helicopters so far, with the highest demand being for its An-28's. Fifteen were sold to buyers in Poland, the Ukraine and Venezuela. At the same time, its foreign partners owe the company considerable sums. In particular, $2.6 million is owed for the lease of Komiavia helicopters in Angola.

Article ID: 593