In another blow to the aviation industry following the grounding of Thomas Cook last week, Slovenian national air carrier, Adria Airways has filed a motion for bankruptcy proceedings this week resulting in the revocation of its licence and grounding of all its aircraft.
"Bankruptcy proceedings were initiated by the management of the company because of the company’s insolvency and based on the Slovenian Financial Operations, Insolvency Proceedings, and Compulsory Dissolution Act which obligates the management of a company in the position of Adria Airways to file for bankruptcy proceedings of the company," the airline said in a statement.
Adria noted that the court has a three-day statutory period within which it shall decide on the opening of bankruptcy proceedings.
It also said that the airline, owned by German investment fund 4K, will cancel all scheduled flights due to initiation of bankruptcy proceedings.
Just last December, Adria announced a €4 million euros (US$4.36 million) recapitalization and a plan to inject at least €10 million euros (US$10.91 million) more for the first quarter of 2019 intended for further business development and growth of the Slovenian airline.