Romania's biggest airline by the number of passengers transported, Blue Air, initiated the preventive agreement, a mechanism that gives a company facing cash flow problems a chance to avoid insolvency.

On July 7, Blue Air announced that it resumed flights to the UK, Spain, Italy, and Belgium.

For avoiding insolvency, the debt restructuring plan should be endorsed by debtors holding 75% of the company's debts, Profit.ro reported. The negotiations for such a plan have already begun. The company hopes to reschedule some EUR 100 million worth of debts for the coming 18 months.

Blue Air incurred losses of about EUR 100 million in lost revenues due to the lockdown. It still looks forward to receiving the EUR 65 million state aid promised by the Government and endorsed by the European Commission.

At this moment, Blue Air can't reimburse the money paid in advance by the passengers of the canceled flights, the company's CEO Oana Petrescu announced, quoted by Adevarul. 

editor@romania-insider.com

(Photo source: Facebook/Blue Air)