Business | October 24, 2001, Wednesday // 00:00

The Sofia City Court approved a list of Balkan Airlines creditors` claims, which are to be satisfied. That was announced by Balkan receiver Todor Nenov. The owner of Balkan Airlines Gad Zeevi is not on the list. Zeevi claims BGN 48.6 M from the national carrier. After the Court decision on October 23, Zeevi lost his full voting status as far as the company`s future is concerned. The debts which Balkan is required to repay to its creditors are fixed at BGN 175 M in total, instead of the BGN 223.6 M, in which Zeevi`s claim was included. The institutions, which are considered the principal creditors of the company are the State Claims Agency (representing the Bulgarian State), the Air Traffic Services Authority, and Sofia Airport. The money owed to the three creditors is nearly 60 % of the total amount of the approved claims. The decision of the Court is final and it cannot be appealed. `The Commercial Code provides a possibility to appeal later against the entire procedure. However that will be too complicated,` Nenov said. `A rehabilitation plan can be quickly and easily adopted, and this would help prevent the company`s bankruptcy,` he added. In 1999, Israel-based Zeevi Holding bought a stake in Balkan Airlines. A bankruptcy procedure was launched early in 2001 due to the poor financial position of the airline.

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