Air Lituanica, an already defunct airline established by the city of Vilnius, will try to open bankruptcy proceedings in court.
© DELFI / Šarūnas Mažeika

On Thursday, the company’s creditors voted against an out-of-court bankruptcy process, the airline said in a press release.

That proposal was rejected by one creditor – Vilniaus Šilumos Tinklai (Vilnius Heating Grids), a municipal company that holds 27.78 percent of creditor votes. The out-of-court bankruptcy process needed the approval by three quarters of creditors to go ahead.

The airline, which is majority-owned by Vilnius local authority, said in a statement on May 22 that it was ceasing operations. A week later, it announced plans to file for bankruptcy.

Air Lituanica last year suffered a loss of around 10 million euros, up from a loss of 5 million euros recorded in 2012-2013.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.

Cabinet backs retail and bank taxes

The Lithuanian Cabinet on Wednesday backed in principle new taxes on bank assets and retail...

Masiulis claims Grybauskaite asked for MG Baltic's positive coverage

Eligijus Masiulis , ex-leader of Lithuania's Liberal Movement, accused of accepting a bribe, claims...

Offices of the future will have to offer more than the working premises

The office becomes an important tool to attract employees and is now not just the work premises, but...

Ignitis Group plans to delist its subsidiaries from Nasdaq Vilnius

Lithuania's state-owned energy group Ignitis Grupe (former Lietuvos Energija ) is planning to...

Norwegians press exporters to cut prices amid weakening krone

The weakening of Norway 's krone against the euro has not yet hit Lithuanian exports to the...