FLAG CARRIER'S BUSINESS PLAN PROJECTS USD 1 M PROFIT THE FIRST YEAR

Business | December 14, 2001, Friday // 00:00

The business plan for Balkan Airlines, which is part of the flag carrier's rehabilitation
program, projects USD 1 M profit by the end of the first year, Commercial Director Hristo Todorov announced.The business plan envisages services to 15 destinations. The authors count on the summer season to generate enough revenue to offset winter losses and thus bring USD 1 M yearly profit.“The participation of a foreign investor is not envisaged but this can change at any later stage,” Balkan's receiver, Olga Milenkova, said, quoted by Pari Daily. Two options are possible for the rehabilitation of flag carrier: transforming the debts into equity and paying the debts to the creditors who do not want to be shareholders. If the debts are transformed, one share will be equal to one lev of receivables. Thus, the company's biggest creditor, the Agency for Governmental Claims, can have equity amounting to BGN 73.3 M. Balkan's capital at present stands at BGN 3 M. According to the assessment prepared by Iliev & Co. consultants the market value of Balkan's assets amounts to BGN 190 M; the liquidation assessment is BGN 105 M. The company's debts to the creditors stand at BGN 165 M. The rehabilitation program was presented to the court on December 12 and has to be approved within a seven days' term.
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