Court launches bankruptcy case against Ukraine International Airlines
Source：Kyiv Independent
From：Taiwan Trade Center, Kyiv
Update Time：2023/12/26
On November 22, Kyiv's Commercial Court initiated bankruptcy proceedings against Ukraine International Airlines (UIA), the nation's largest airline, as reported by Ukrainska Pravda. This development follows a lawsuit filed by the state-owned Ukreximbank against UIA on October 31. Forbes Ukraine revealed that the airline is currently burdened with a debt of Hr 20.5 billion (approximately $568 million).
Forbes had earlier reported on October 30 that UIA's assets were being auctioned at prices significantly lower than their market value, according to sources within the airline. This financial distress comes in the wake of Ukraine's airports ceasing operations for all non-military flights after the onset of the full-scale invasion on February 24, 2022, severely impacting the airline's operations.
Before the war, UIA boasted a fleet of at least 25 aircraft, with 10 located in Ukraine at the time of the invasion. The crisis led to leasing companies recalling 10 planes that were stationed outside of Ukraine. Efforts to deploy the remaining four planes for new flights in Europe were also halted in September 2022, leading to a complete cessation of UIA flights since then.
The airline's troubles were compounded by disputes between two of its primary shareholders, businessman Aron Maiberh and the Ukrainian oligarch Ihor Kolomoisky. Oleksandr Polyanskyi, head of the union of UIA airline pilots, told Forbes that the company has been struggling to pay its bills.
Kolomoisky, a prominent Ukrainian business tycoon and billionaire, was arrested on September 2 on charges of alleged fraud and money laundering related to his oil and gas holdings. Further complicating matters, the National Anti-Corruption Bureau of Ukraine (NABU) slapped additional criminal charges on Kolomoisky on September 7, accusing him of embezzling $250 million from PrivatBank in 2015.
The situation surrounding UIA reflects the broader challenges faced by Ukrainian businesses in the context of the ongoing conflict and the complexities of corporate governance in the country. The bankruptcy proceedings of UIA mark a significant moment in Ukraine's aviation industry, highlighting the economic fallout of the war and the intricate web of legal and financial issues entangling prominent Ukrainian businesses and their owners.
Source: https://kyivindependent.com/kyiv-court-to-begin-bankruptcy-proceedings-against-ukraine-international-airlines/