Trade union Promyana approached the Prosecutors Office with a claim for fresh investigation in questionable deals struck by Israeli Zeevy Holdings Group, owner of national air carrier Balkan Airlines. The unionists insist that large sums have been transferred to Zeevy affiliates after sale of real estate of the air carrier. Allegedly the sales were effected after the airline was declared insolvent. Balkan’s license was suspended March 5th, 2000 by Antoni Slavinski, Minister of Transport and Communications. Sofia City Court declared the Israeli owned national air carrier Balkan Airlines insolvent on March 5, 2001. The insolvency date was set as of November 1998 when Balkan discontinued due payments to Bulstrad insurer and re-insurer. The liabilities to Bulstrad currently amount to USD 11 million. Balkan’s owner, the Israeli Zeevy Holdings Group, has grounded all flights on February 14 and is suing Bulgaria for USD 230 million at the International Court of Arbitration in Paris citing alleged government breaches of the privatization contract. Zeevy bought Balkan Airlines for USD 150 000 in April 1999 and promised to invest USD 120 million in a five-year-period.

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