BRA applies for extended corporate restructuring

The airline BRA applied on 19 October 2023 for corporate restructuring for the group's seven operating companies to ensure long-term financial stability. A company restructuring takes place initially for three months. If the time turns out to be too short, it can be extended for another three months at the request of the debtor and/or the reconstructor. BRA has now applied for extended reconstruction, which is completely according to plan.

The goal of the legal reconstruction is to implement significant improvement measures, clean up debts and renegotiate agreements to secure jobs, preserve the important aviation infrastructure in Sweden and to create long-term sustainable conditions for BRA. During the process, the company's operations have continued as usual and the passengers have not been affected by the reconstruction. No employees have lost their jobs and suppliers have been paid regularly.

In the restructuring plan that was sent to all creditors on December 11, 2023, it appears that the company has reached its goal with the crucial activities that were planned, such as negotiations with the largest suppliers and customers. It also shows that the owners are willing to contribute more than SEK 100 million at the end of the reconstruction.

Before the application for planning negotiations is sent to the District Court, according to the reconstructionist's assessment, it is appropriate that an agreement in principle be reached with the group's largest creditor, the Swedish Tax Agency. Dialogue with the Swedish Tax Agency is ongoing and as soon as agreement is reached, the reconstructor will submit an application for planning negotiations. Once the plan negotiation is submitted, it takes six to eight weeks to complete the reconstruction.