Russian airlines asked to extend the bankruptcy moratorium

Russian airlines asked to extend the bankruptcy moratorium

The Association of Air Transport Operators (AEVT, which unites the largest airlines of the Russian Federation) sent an appeal to the Ministry of Transport with a request to extend the moratorium on bankruptcy for 6 months, until April 2021. “Expressing the opinion of its 23 leading Russian airlines and airlines, AEVT asks the Ministry of Transport of the Russian Federation to apply to the government with a proposal to extend the moratorium on bankruptcy for 6 months,” says the text of the corresponding letter to the Minister of Transport of the Russian Federation, Evgeny Dietrich, published on the website of the association.

The Association notes that the extreme negative impact of the pandemic on the economy is obvious and continues to be felt. “This is especially true of the aviation industry, in which the level of air traffic has not fully recovered,” the appeal says.

The government of the Russian Federation announced a moratorium on bankruptcy of companies from the industries most affected by the COVID-19 pandemic, as well as strategic and strategic enterprises for the period from April 6 to October 6, 2020 as one of the main anti-crisis measures. In order to retain the ability to pay dividends and conduct buybacks, the moratorium must be abandoned: a significant number of public companies have used this right.

In early autumn, First Deputy Prime Minister Andrei Belousov instructed the departments headed by the Ministry of Economic Development and Trade “to analyze the existence of circumstances that are grounds for extending the moratorium on the initiation of bankruptcy proceedings at the request of creditors against individual debtors,” a source in financial and economic block of the government.

“The Ministry of Economic Development, indeed, received such an order, at present the issue is planned to be worked out taking into account the positions of the regions, federal executive authorities and stakeholders,” Deputy Economic Development Minister Ilya Torosov, who is in charge of bankruptcy issues, confirmed to Interfax.

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