Adria Airways CRJ900. By Rob Finlayson
Shareholders of Slovenia-based Adria Airways (JP) approved a cash injection of €50 million ($68.4 million) and a debt-to-equity conversion of €19.7 million against the financially troubled airline’s total debt of nearly €70 million.
According to a statement released by the airline, the Republic of Slovenia and JP’s largest shareholder, state-run PDP Corp., will invest the €50 million. The money was given on the condition that the creditor banks simultaneously perform the debt-to-equity conversion in the amount of no less than 25% of their claims toward the company. All the bulk shares, which will be issued by the company, have to be paid by Sept. 30.
In addition, JP said its shareholders appointed a special auditor to review the company business over the past five years.
In January, the Star Alliance member was granted an additional credit of up to €4 million ($5.16 million) from Slovenian banks based on the carrier’s restructuring plan after its total debt reached €130 million. Klemen Bostjancic, former chief supervisor of construction firm Vegradas, was named as its new CEO (ATW Daily News, Jan. 25).
Last week, JP announced it suspended nine routes starting with the winter schedule (ATW Daily News Sept. 19). Croatia Airlines said it plans to operate at least one of JP’s CRJ900s on some of its regional routes.