Air Armenia goes bankrupt

Air Armenia goes bankrupt

Air Armenia will be liquidated, the Zhoghovurd newspaper writes.

According to the newspaper, the air company’s bankruptcy formalization is under way now in compliance with a decision made by the first-instance court of Yerevan’s Kentron and Nork Marash districts in 2015. 

The court’s decision to announce Air Armenia bankrupt was based on a suit filed by HSBC Bank Armenia – the air company owed €2,150,000 to the bank.  

Air Armenia disputed the court decision on bankruptcy, but the Court of Appeal declined the air company’s motion leaving the first-instance court’s decision unchanged, and the bankruptcy formalization process began.  

The company’s debts totaled $16 million by September 2015. Air Armenia also owed $2.5 million to Ala International, and $400,000 to the prominent Armenian entrepreneur Gagik Tsarukyan.

Air Armenia is also indebted to Zvartnots Airport, Ameriabank, Converse Bank and Ingo Armenia insurance company, reports.