It took them a while, but here we are!
Brussels, October 03, 2001
In order to secure operations as well as the interests of every creditor, Sabena asked for judicial composition
In order to secure operations as well as the interests of every creditor, Sabena asked for judicial composition
The Board of Directors of Sabena gathered yesterday to review the financial situation of Sabena at the light of the decision of Swissair not to participate to the funding of the Business Plan. Consequently, and according to the EU regulation, the Belgian State is not allowed to participate to the foreseen equity funding.
The Board of Directors asked the Belgian State to grant Sabena a bridge credit with regard to the adaptation of the Business Plan to the new circumstances.
Sabena has the necessary cash to guarantee normal activities for the time being. But in order to secure future operations as well as the interest of every creditor, the Company has filed today a petition for Judicial Composition to the Brussels Trade Court.
Judicial Composition is a precautionary measure putting a company in difficulty temporarily under shelter of its creditors. It secures the continuity of the operations and gives time to the Management, under control of a Commissioner, to put forward recovery measures. For employees, it means the continuity of the work relationship.
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My sympathies to all those involved (including myself) in this ongoing thriller. Hope someone soon realises that is not just a company with profitability problems. IMHO, this is a very good airline going bust because of mismanagement!
