POST Online Media Lite Edition


Alitalia board starts bankruptcy proceedings

Staff Writer |
Alitalia has decided to ask the government to place it under special administration.

This is starting a process that will lead to the loss-making Italian airline being overhauled, sold off or wound up altogether.

Alitalia's board took the formal decision on Tuesday after workers rejected its latest rescue plan last week, making it impossible for the airline to secure funds from shareholders to keep its aircraft flying.

Once under administration, the government will appoint one or several commissioners to assess whether Alitalia can be restructured, either as a standalone company or through a partial or total sale, or should be liquidated.

The board made its decision after meeting shareholders on Tuesday, citing Alitalia's serious economic state, the unwillingness of its investors to refinance the company and the impossibility of finding a quick alternative.

What to read next

Alitalia says workers have rejected rescue plan
Alitalia hopeful it can raise cash
Ryanair submitted non-binding bid for Alitalia