Danish airliner Cimber Sterling Group (DC: CIMBER) has filed for bankruptcy. The company has been making heavy losses for quite some time. It has been surviving on capital injections from the majority owner Mansvell Enterprises Ltd, a company controlled by Ukrainian billionaire Igor Kolomoisky. Most of last year there were speculations on a potential merger with other Mansvell controlled company Avia Express Sweden AB (Skyways).
In the company release this morning, Cimber Sterling said that the owners have decided not to support the airliner financially any longer. Therefore the Board of Directors has decided the declare bankruptcy, with the declaration handed to Sønderborg court this morning. The management said it will work closely with the court appointed curator to ensure as much value for the company as possible. Their suggestion to the curator is to continue to fly the four flights the company operates for SAS and to possible operate more in a reconstructed manner with the aim of being bought. More information should come within a few days.
The situation is certainly troubling for current ticket holders and the near 900 employees, not to mention the shareholders. The company points customers to go to their website, which however isn’t currently operational. The standard Travel Guarantee Fund rules should apply. Other airliners appear to be stepping in to some of the made available routes. The motivation behind the owners’ decision is also being speculated upon, since they haven’t likely given up on creating a Nordic airliner.
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