Air Belgium engages in judicial reorganisation: creditors to vote on proposed plan
21 August 2024
Air Belgium is currently undergoing a Judicial Reorganisation Procedure (JRP)
aimed at restructuring its debts and obligations to avoid insolvency.
The airline has submitted a reorganisation plan,
which is now pending approval by its creditors, including passengers affected by flight cancellations.
Creditors are now being asked to vote on the plan,
with the outcome of the vote scheduled to be announced after a hearing on September 4, 2024.
However, if the plan is rejected,
Air Belgium may not be able to proceed with the reorganisation,
potentially leading to more severe financial consequences for the company and its creditors.
Conclusion
Air Belgium’s reorganisation plan is a crucial step in the airline’s efforts to overcome its current financial challenges.
The outcome of the upcoming vote will determine
whether the company can move forward with its proposed strategy to repay its debts and continue operations.
Air Belgium, under judicial liquidation, must find a buyer within four months
Air Belgium, which had been under judicial reorganisation since September 2023,
was placed under judicial liquidation with asset transfer by the Walloon Brabant Business Court on 19 September 2024.
This decision marks the end of the judicial reorganisation process,
with a court-appointed administrator tasked with transferring the company’s assets to potential investors.
Air Belgium has been given a four-month period to find a buyer,
though the company’s management hopes to secure a deal within a month and a half.
Air Belgium’s assets, including three Airbus A330 planes and one Boeing 747-8, as well as its remaining operations, are now up for sale.
Air Belgium’s future hangs in balance as five buyers continue negotiations
9 November 2024
Air Belgium, which ceased its own passenger flights,
is navigating a tense period as it seeks buyers for its cargo and passenger operations.
Currently, five potential investors remain in negotiations,
with three showing stronger interest,
according to financial newspaper L’Echo.
However, no candidate has expressed interest in acquiring both the cargo and passenger divisions;
some are exploring partnerships to manage the parts they do not wish to retain.
The deadline for offers has been extended to 8 November 2024,
with submissions expected by Friday at midnight.
Investors have until Friday to bid for Air Belgium's activities
Wednesday 13 November 2024
Investors wishing to take over some or all of Air Belgium's activities have until Friday 15 November 2024
to make their bids, the Belgian airline announced on Wednesday.
The aim is to "guarantee solid and irrevocable bids," added the airline, which is in the process of transferring its activities.
The deadline for interested investors to submit takeover bids
was extended several times in recent weeks since the end, in mid-September,
of the judicial reorganisation procedure (PRJ) in which Air Belgium found itself.
At the same time, the company had asked to launch a procedure to transfer its activities to interested investors,
a procedure that has a maximum duration of four months.
The extension to 15 November 2024 - which took place at the request of the candidates, according to the Brabant carrier -
"is intended to guarantee solid, irrevocable offers
and reflects the serious interest of potential buyers in view of the complexity of the airline sector."
Several investors have expressed an interest in taking over part of the business.
Mr. Bernard Vanham, the practitioner appointed by the Nivelles Company Court to manage the liquidation of Air Belgium,
has been tasked with collating the bids presented and submitting a report.
A hearing is scheduled for 5 December 2024 to validate his report.
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