Sofia city court allowed the creditors of Bulgaria’s flag carrier Balkan Airlines to review the rehabilitation plan of the carrier, which had been prepared by the receivers of the debt-ridden company Hristo Mollov and Olga Milenkova. The general meeting of the Balkan creditors, during which they will either approve or reject the rehabilitation program of the carrier, is scheduled for May 20. In order for the recovery plan to be approved by court, it should be approved by the majority of the creditors with more than half of the accepted by court takings. A revision of the list of the creditors of Bulgaria’s flag carrier Balkan airlines had revealed debts of BGN 291.538 M as of March 2001, almost double the amount previously announced, receiver Mollov announced April 2. More than 50 percent of that total is owed to the Bulgarian state and the increase in is due to the added debts for transport contracts, he explained. Balkan Airlines was put in receivership in March 2001 and since then has been managed by two court-appointed administrators. A Sofia court is due to rule by the end of this week on the recovery plan, prepared by the receivers. If the strategy is rejected, Balkan, in receivership since March 2001, may face liquidation.

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