Bankruptcy/Rehabilitation Process Started at Georgian Airways
Bankruptcy / Rehabilitation process started at Georgian Airways on December 31, 2021, the relevant application was registered by Georgian Airlines on the last day of last year.
The application was preceded by the December 29 ruling of the Tbilisi City Court. The same document shows that the airline owes more than 175 million GEL to various parties, while the value of its assets is only 21.4 million GEL.
Tbilisi City Court Judge Liana Kajashvili ruled on December 29, 2021, that COVID-19 and the closure of the border had put the airline in a difficult financial crisis and that it could no longer meet its obligations.
Accordingly, the start of the bankruptcy/rehabilitation process at Georgian Airways will be used to stabilize its financial performance, and during this period the company plans to continue flights to strategic destinations (Amsterdam, Tel Aviv and Minsk, as well as seasonal charters). At the same time, insolvency proceedings will protect the airline from multi-million dollar debt service.
The airline employed 275 people before the crisis.