Avion Express, a Lithuanian narrow-body ACMI and charter operator, announces that the company has begun financial restructuring (Chapter 11 type) procedures to address the impact of Covid-19. As an initial step in this process, the Company has approached its suppliers and other creditors regarding an agreement on decrease of indebtedness level and other proposed steps connected to the latter. Financial restructuring plan includes seeking in-court protection against creditors in upcoming weeks. During financial restructuring procedures, Avion Express, Lithuania regular scope of operations will continue.
The situation in the global aviation market due to Covid-19 pandemic proven to be instrumental in company’s management’s decision to take difficult, yet needed, actions and initiate financial reorganization process. This complex, sustainable and long-term solution will allow to address Company’s current business and financial difficulties fully ensuring the safety and quality of the flights.
The Company will continue its activity that will allow to meet its obligations in the future, as the passenger aviation markets recover after the Covid-19 pandemic and its consequences.
“The pandemic proved to be a difficult time for many companies in the aviation industry, including Avion Express, Lithuania. To manage the challenges brought by the pandemic of Covid-19 a lot of changes in the business were implemented during 2020. As a further step, in addition to recent adjustments and optimizations, which were made in the business during past 8 months, we decided to begin a financial restructuring and to seek protection against creditors of the company. Such decision is aimed at optimally coordinating the interests of our creditors and ensuring the sustainable continuity of Avion Express activities”, said Darius Kajokas, Chief Executive Officer of Avion Express.