Airport, Banks, Financial Services, Investments, Latvia, Legislation, Transport

International Internet Magazine. Baltic States news & analytics Friday, 06.12.2019, 16:08

airBaltic private shareholder gives no reply on funds necessary for increasing airline's share capital

Alla Petrova, BC, Riga, 28.11.2011.Print version
Baltijas aviacijas sistemas (BAS), the private shareholder in the national airline airBaltic, was unable to state clearly during the airline's shareholders meeting if it has the necessary funds for airBaltic share capital increase, as Transport Ministry State Secretary Anrijs Matiss told reporters after the meeting.

"I had an impression that the private shareholder was still looking for money," said Matiss.

Also during the airBaltic shareholders meeting today, Economy Ministry's deputy state secretary, Andris Liepins, was appointed to airBaltic council, replacing the outgoing council member, Karl Gunther Sollinger, writes LETA.

As reported, the agreement on increasing airBaltic share capital, signed by the airline's shareholders on October 3, stipulates that the state and Baltijas aviacijas sistemas (BAS) would jointly invest EUR 153 million (LVL 107.1 million) into the airline's share capital. The agreement was also signed by the airline's creditors including the Lithuanian bank Snoras and Latvijas Krajbanka.

At the beginning of November, BAS transferred to airBaltic account LVL 14 million. The state has paid LVL 5.2 million into the airline's account, and is yet to pay another LVL 10.8 million.

After that, both shareholders will have to inject another LVL 77.1 million into the airBaltic account – the state 52.6% and BAS 47.2% of the amount.

As already reported, around LVL 100 million is missing at Krajbanka, which is why the Financial and Capital Market Commission has halted the bank's operations. Hence the uncertainty about the ability of BAS to honor its liabilities regarding the airBaltic share capital increase.






Search site