A majority of creditors in the Swedish airline BRA agree to write down 75 percent of the debt. The company, which is in reconstruction, now hopes to be able to fly again from September, reports DN.

In April, BRA announced that the airline had filed for restructuring to deal with the effects of the coronavirus crisis and avoid bankruptcy. The company had been forced to halt all air traffic and lay off large parts of its staff.

”"After careful consideration, the company's board of directors has chosen to apply for restructuring and freeze operations completely. This will give us breathing space to develop a long-term sustainable business plan. I sincerely regret how this affects employees and customers," stated BRA's CEO Geir Stormorken in a press release in connection with the announcement.

According to Nils Åberg, the chief restructuring officer at the Carler law firm, a majority of the unsecured creditors are now positive about a composition proposal that would mean they would receive back 25 percent of their debts by July next year at the latest.

”"Overall, the creditors have been understanding of the company's situation, taking into account the general effects that the corona pandemic has had on the entire aviation industry,", says Nils Åberg in an email to DN.

The support is sufficient to take the proposal to the Stockholm District Court for negotiation. According to BRA's composition of assets, BRA Sweden has debts of SEK 721 million, of which SEK 690 million are unsecured claims. For the proposal to pass, 75 percent of creditors with at least 75 percent of the total debts must vote yes.

Source: di.se